6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2008

Commission File Number 001-15244

CREDIT SUISSE GROUP

(Translation of registrant’s name into English)

Paradeplatz 8, P.O. Box 1, CH-8070 Zurich, Switzerland
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.

   Form 20-F      Form 40-F   

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

   Yes      No   

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.

Introduction

This report on Form 6-K contains information on Credit Suisse Group and consists of the Financial Review 4Q07, which is attached as an exhibit to this Form 6-K and all of which, except the sections entitled “Dear shareholders, clients and colleagues” and “Investor Information”, is incorporated herein by reference, and the Financial Statements 4Q07, which are attached as an exhibit to this Form 6-K and incorporated herein by reference.

Unless the context otherwise requires, references herein to “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group and its consolidated subsidiaries and the term “the Bank” means Credit Suisse, the Swiss bank subsidiary of the Group, and its consolidated subsidiaries.

This report on Form 6-K is hereby incorporated by reference into the Registration Statement on Form F-3 (file no. 333-132936).

References herein to “CHF” are to Swiss francs.

The Financial Review 4Q07 and the Financial Statements 4Q07 each contain financial information for the year ended December 31, 2007. Our independent registered public accounting firm has not completed its audit of our financial statements for the year ended December 31, 2007 and we have not finalized our Annual Report on Form 20-F for the period. Accordingly, such financial information is subject to completion of year-end audit procedures which may result in changes to that information.

Forward-looking statements

This Form 6-K and the information incorporated by reference in this Form 6-K include statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In addition, in the future Credit Suisse Group and others on its behalf may make statements that constitute forward-looking statements.

When evaluating forward-looking statements, you should carefully consider the cautionary statement regarding forward-looking information, the risk factors and other information set forth in Credit Suisse Group’s annual report on Form 20-F for the year ended December 31, 2006 (the Group’s 2006 20-F), and subsequent annual reports on Form 20-F filed by Credit Suisse Group with the US Securities and Exchange Commission (SEC) and Credit Suisse Group’s reports on Form 6-K furnished to or filed with the SEC, and other uncertainties and events.

Legal proceedings

The Group is involved in a number of judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of its businesses. Some of these actions have been brought on behalf of various classes of claimants and seek damages of material and/or indeterminate amounts. The Group believes, based on currently available information and advice of counsel, that the results of such proceedings, in the aggregate, will not have a material adverse effect on its financial condition but might be material to operating results for any particular period, depending, in part, upon the operating results for such period.

Information on the Group’s legal proceedings is set forth in “Note 23 – Litigation” in the Notes to the condensed consolidated financial statements in the Financial Statements 4Q07.

Mortgage-related matters

Credit Suisse Securities (USA) LLC (CSS LLC) and certain of its affiliates have received subpoenas and requests for information from certain regulators regarding the origination, purchase, securitization and servicing of subprime and non-subprime residential mortgages and related issues. CSS LLC and its affiliates are cooperating with such inquiries and requests. CSS LLC and certain of its affiliates have also been named as defendants in various civil litigation matters related to the residential mortgage business, including a purported class action related to CSS LLC's role as an underwriter of certain offerings of mortgage pass- through certificates for a subsidiary of Countrywide Financial Corp., and an action filed by the City of Cleveland against numerous financial institutions, including CSS LLC, alleging that the defendants' activities in connection with securitizations of subprime mortgages created a "public nuisan ce" in the City of Cleveland.

Exhibits

No.      Description

99.1     Financial Review 4Q07.

99.2     Financial Statements 4Q07.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CREDIT SUISSE GROUP

(Registrant) 

Date: February 12, 2008

By:

/s/ Urs Rohner

      Urs Rohner

      General Counsel

By:

/s/ Renato Fassbind

      Renato Fassbind

      Chief Financial Officer

EX-99

Financial Highlights

			in / end of			% change		in / end of	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Net income (CHF million)
Income from continuing operations	1,329	1,302	2,599	2		(49)	8,549	8,281	3
Net income	1,329	1,302	4,673	2	< /td>	(72)	8,549	11,327	(25)
Earnings per share (CHF)
Basic earnings per share from continuing operations	1.30	1.27	2.42	2		(46)	8.18	7.53	9
Basic earnings per share	1.30	1.27	4.35	2		(70)	8.18	10.30	(21)
Diluted earnings per share from continuing operations	1.21	1.18	2.29	3		(47)	7.65	7.19	6
Diluted earnings per share	1.21	1.18	4.12	3	< /sup>	(71)	7.65	9.83	(22)
Return on equity (%)
Return on equity	12.4	12.4	44.1	–		–	19.8	27.5	–
Core Results (CHF million)
Net revenues	7,738	6,020	9,816	29		(21)	36,130	34,940	3
Provision for credit losses	203	4	(20)	–		–	240	(111)	–
Total operating expenses	6,155	4,733	6,449	30		(5)	25,565	24,311	5
Income from continuing operations before taxes	1,380	1,283	3,387	8		(59)	10,325	10,740	(4)
Core Results statement of income metrics (%)
Cost/income ratio	79.5	78.6	65.7	–		–	70.8	69.6	–
Pre-tax income margin	17.8	21.3	34.5	–		–	28.6	30.7	–
Tax rate	(1.1)	(2.5)	23.8	–		–	15.9	22.2	–
Net income margin from continuing operations	17.2	21.6	26.5	–		–	23.7	23.7	–
Net income margin	17.2	21.6	47.6	–		–	23.7	32.4	–
Assets under management and net new assets (CHF billion)
Assets under management	1,554.7	1,571.3	1,485.1	(1.1)		4.7	1,554.7	1,485.1	4.7
Net new assets	(10.5)	(9.7)	6.9	–		–	50.4	95.4	–
Balance sheet statistics (CHF million)
Total assets	1,361,718	1,376,442	1,255,956	(1)		8	1,361,718	1,255,956	8
Net loans	240,534	226,959	208,127	6		16	240,534	208,127	16
Total shareholders' equity	43,980	41,965	43,586	5		1	43,980	43,586	1
Book value per share (CHF)
Total book value per share	43.09	41.12	41.02	5		5	43.09	41.02	5
Tangible book value per share	31.99	30.16	30.20	6		6	31.99	30.20	6
Shares outstanding (million)
Common shares issued	1,162.4	1,162.2	1,214.9	0		(4)	1,162.4	1,214.9	(4)
Treasury shares	(141.8)	(141.6)	(152.4)	0		(7)	(141.8)	(152.4)	(7)
Shares outstanding	1,020.6	1,020.6	1,062.5	0		(4)	1,020.6	1,062.5	(4)
Market capitalization
Market capitalization (CHF million)	76,024	86,576	99,949	(12)		(24)	76,024	99,949	(24)
Market capitalization (USD million)	67,093	74,290	81,894	(10)		(18)	67,093	81,894	(18)
BIS statistics
Risk-weighted assets (CHF million)	312,068	298,688	253,676	4		23	312,068	253,676	23
Tier 1 ratio (%)	11.4	12.0	13.9	–		–	11.4	13.9	–
Total capital ratio (%)	14.7	15.3	18.4	–		–	14.7	18.4	–
Number of employees (full-time equivalents)										< /sup>
Number of employees	48,100	47,200	44,900	2		7	48,100	44,900	7

Dear shareholders, clients and colleagues

We are pleased with our record income from continuing operations for 2007, achieved despite the severe market dislocation in the second half of the year. Our integrated business model, diversified earnings mix, global reach and risk management capabilities enabled us to deliver year-on-year growth and sustained profitability despite an extremely challenging environment. This helped to ensure that Credit Suisse ended the year with a strong capital position. Based on our performance and our capital strength, the Board of Directors will propose an increased cash dividend for 2007 of CHF 2.50 per share.

2007 full-year and fourth-quarter results and business review

Credit Suisse reported net income and record income from continuing operations of CHF 8,549 million in 2007. Net revenues were CHF 40,912 million in 2007, also a record. Diluted earnings per share from continuing operations were CHF 7.65 for 2007 compared to CHF 7.19 in 2006. Return on equity was 19.8% compared to 27.5% in 2006, which included substantial income from discontinued operations.

Fourth-quarter income from continuing operations was CHF 1,329 million, 49% lower than in the same period in the previous year, which benefited from favorable market conditions globally. Net income for the fourth quarter of 2007 was also CHF 1,329 million.

In Investment Banking, pre-tax income for the full year was CHF 4,826 million. In the fourth quarter, pre-tax income was CHF 328 million, well below the same period in the previous year but above the previous quarter. Net revenues were CHF 3,918 million, 36% lower than the fourth quarter of 2006. Results reflected the impact of the credit market dislocation on our structured products and leveraged finance businesses, including net write-downs of CHF 1.3 billion. During the quarter we reduced our positions in these businesses. We recorded strong results in other areas, including equity trading, interest rate products, fixed income proprietary trading and foreign exchange, reflecting the increasing diversification of our revenues.

In Private Banking, pre-tax income for 2007 reached CHF 5,486 million. In the fourth quarter pre-tax income was CHF 1,377 million, 20% higher than in the same period of 2006. Net revenues rose 17% to CHF 3,478 million. These record results reflected our expanded international presence. We will continue to build our Wealth Management business globally and leverage our integrated banking capabilities to drive growth while maintaining high profitability. Our Swiss Corporate & Retail Banking business also improved its profitability in a favorable environment.

In Asset Management, we reported pre-tax income of CHF 354 million for the full year. In the fourth quarter we reported a pre-tax loss of CHF 247 million, compared with pre-tax income of CHF 89 million in the same period in the prior year. Results included valuation reductions of CHF 774 million from securities purchased from our money market funds, partially offset by significantly higher private equity and other investment-related gains. Before these valuation reductions, our asset management business continued to perform well, particularly alternative investments.

Growth prospects

Our performance during this difficult period has differentiated Credit Suisse from many of its peers. We believe that we have an outstanding platform from which we can create value for shareholders. This platform is built on a combination of strengths, including our business and geographic diversity; our disciplined approach to risk management and our strong capital base and balance sheet. Continuity in our experienced management team and a consistent focus on delivering our strategy has been invaluable. As an integrated bank, we believe that we are well placed to capture strong growth opportunities in each of our businesses and improve our operating leverage despite challenging market conditions.

In Investment Banking, we have demonstrated our ability to react swiftly to the changing market environment by reducing headcount and resources in the areas that have been negatively affected by the recent market developments. At the same time, we are investing in growth areas such as algorithmic trading, commodities, derivatives, life finance and prime services, and we are continuing to build on our strong presence in the emerging markets.

In Private Banking, our stability and strong financial performance over recent years has reinforced our position as a trusted partner, particularly in view of the current market conditions. We aim to increase the proportion of assets that we actively manage for clients. We are growing our high- and ultra-high-net-worth client base by increasing our relationship managers dedicated to this sector and by mobilizing the bank’s combined resources to serve the sophisticated needs of these clients. We believe that we can increase our penetration in this sector significantly in 2008.

In Asset Management, we expect to capture growth opportunities, while focusing on our core competencies. Within our alternative investment platform, we are expanding the scale and geographic reach of our private equity business and expect to further grow our hedge fund business.

Delivering the expertise of the integrated bank to our clients is becoming part of the culture of Credit Suisse. We generated approximately CHF 5.9 billion of revenues from cross-divisional activities in 2007, which represents approximately 16% of our Core Results net revenues, and we are seeing good progress in collaboration among all three divisions.

During 2007, we improved the efficiency of our operations. Our Centers of Excellence – which leverage our worldwide resources and the global talent pool in order to supply our businesses with high-quality services at competitive costs – will help us to make further improvements. By the end of 2007, around 10% of our employees were located in these hubs. By the end of 2008, this figure should rise to at least 15%, which will help us achieve our goal of being in the top quartile of our industry in terms of cost/income ratio by 2010.

Credit Suisse is well capitalized and we will continue to manage our capital conservatively. We will balance the desire to be opportunistic in expanding our business with the recognition that we need to be prudent with our capital and balance organic growth with returning capital to shareholders. We will focus on bolt-on acquisitions that are a good fit for our business and in line with our strategy as an integrated bank. We are ahead of the original schedule for the share buyback program, but our ability to complete this during 2008 will depend on market conditions.

Outlook

Despite the continuing turmoil in the credit markets and the difficult conditions that we expect to continue in the near term, we believe our integrated model sets us apart from many of our peers and gives us attractive opportunities to build long-term value for our shareholders. We believe we can deliver profitable growth across market cycles through the targeted and measurable initiatives we have put in place. In 2007, we demonstrated our ability to manage through challenging market conditions and we are committed to building on the strength and resilience of our business. None of this would be possible without the hard work, energy and dedication of our employees, who continue to make us proud and confident in the future of Credit Suisse.

Yours sincerely

Walter B. Kielholz    Brady W. Dougan

February 2008

To be read in conjunction with the Credit Suisse Financial Statements 4Q07.

Operating Environment
Operating Environment
Credit Suisse Results
Credit Suisse
Core Results
Key Performance Indicators
Core Results
Investment Banking
Private Banking
Wealth Management
Corporate & Retail Banking
Asset Management
Overview of Results and Assets under Management
Results
Assets under Management
Balance Sheet, Capital and Risk
Balance Sheet
Capital Management
Risk Management
Highlights from the Condensed Consolidated Financial Statements – unaudited
Highlights from the Condensed Consolidated Financial Statements
Selected Notes to the Condensed Consolidated Financial Statements – unaudited
Net interest income
Commissions and fees
Other revenues
Provision for credit losses
Compensation and benefits
General and administrative expenses
Segment reporting
Earnings per share
Investor Information
Investor Information

For purposes of this report, unless the context otherwise requires, the terms “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group and its consolidated subsidiaries and the term “the Bank” means Credit Suisse, the Swiss bank subsidiary of the Group, and its consolidated subsidiaries.

Credit Suisse at a Glance

Credit Suisse

As one of the world’s leading financial services providers, we are committed to delivering our combined financial experience and expertise to corporate, institutional and government clients and high-net-worth individuals worldwide, as well as to retail clients in Switzerland. We serve our diverse clients through our three divisions, which cooperate closely to provide holistic financial solutions based on innovative products and specially tailored advice. Founded in 1856, we have a truly global reach today, with operations in over 50 countries and a team of over 48,000 employees from approximately 100 different nations.

Investment Banking

In Investment Banking, we offer investment banking and securities products and services to corporate, institutional and government clients around the world. Our products and services include debt and equity underwriting, sales and trading, mergers and acquisitions advice, divestitures, corporate sales, restructuring and investment research.

Private Banking

In Private Banking, we offer comprehensive advice and a broad range of wealth management solutions, including pension planning, life insurance products, tax planning and wealth and inheritance advice, which are tailored to the needs of high-net-worth individuals worldwide. In Switzerland, we supply banking products and services to high-net-worth, corporate and retail clients.

Asset Management

In Asset Management, we offer integrated investment solutions and services to institutions, governments and private clients globally. We provide access to the full range of investment classes, ranging from money market, fixed income, equities and balanced products, to alternative investments such as real estate, hedge funds, private equity and volatility management.

Operating Environment

The results of our integrated banking organization depend to a large extent on the general macroeconomic environment and developments in the financial markets. In order to put our results into context, we provide a review of the operating environment we encountered throughout the reporting period.

Operating Environment

The operating environment in 4Q07 continued to be characterized by the turmoil in credit markets. Funding remained challenging for financial institutions and required central banks to provide additional liquidity. The economy lost growth momentum in the United States, and global business prospects moderated slightly.

Economic environment

The operating environment in 4Q07 continued to be characterized by the impacts from the turmoil in credit markets and lack of liquidity. Many large banks took measures to reduce their financial exposure and strengthen their balance sheet following significant valuation reductions on certain products. Market sentiment reflected continued uncertainty about the ultimate magnitude of the losses and in particular the impact on the economy. Falling private sector employment growth and a marked slowdown in manufacturing activities in the United States (US) towards the end of the quarter were strong signs of a pronounced deceleration of US economic growth. Macroeconomic trends in the emerging markets remained strong, however, limiting the adverse impacts on global growth prospects.

Equity markets experienced higher volatility, especially during November, and equity performance during 4Q07 was mixed (see the chart “Equity markets”). Market indices for the US and Europe ended the quarter mostly at lower levels, driven by the negative stock performance of financial services companies. Equity valuations overall remained attractive, despite the slower economic growth prospects, which eased some of the inflationary pressure observed earlier in 2007. Against this backdrop, central banks gained more flexibility to lower interest rates and increased liquidity in interbank money markets, where the uncertainty around further potential asset valuation adjustments and the state of banks’ capital positions made term funding for banks difficult. The US Federal Reserve (Fed) further cut the benchmark interest rate to 4.25%, and the Bank of England also started to ease rates, while the European and Swiss central banks held rates steady. To support banks in managing their liquidity over the year end and to further improve liquidity in the money markets, central banks provided additional liquidity in December through a concerted auctioning process. However, US Ted spreads remained at high levels (see the chart “Money markets”).

With investors looking for quality and the Fed providing liquidity to the markets, the US dollar yield curve shifted lower at the end of 4Q07 (see the chart “Yield curves”). Demand remained strong for government bonds and high-grade debt, while the US dollar traded at historic low levels against European currencies. The weaker US dollar reflected the reduced interest rate differential and the unwinding of carry trades emerging from the reduced risk appetite of participants in currency markets. The increased uncertainties and higher volatility put pressure on those trades and led to an appreciation of funding currencies such as the Japanese yen and the Swiss franc.

Sector environment

With the ongoing, albeit slower, global economic expansion, the wealth management industry continued its growth trend, particularly in Asia, the Middle East and other emerging markets. Growth in net new assets remained significant in these regions, and the number of wealth management-dedicated staff continued to increase. For companies not reporting in US dollars, the weakness of the US dollar generally adversely impacted results. Increased uncertainty drove client demand in capital protection products, and increased equity trading activities partially offset a general shortfall in fixed income-related results.

The banking sector was impacted by the turmoil in credit markets, including valuation reductions, further provisions, ratings downgrades, profit warnings, cancelled share buybacks, fears about possible dividend cuts and the need for recapitalization and balance sheet reconstruction. Banks issued a record amount of equity-related securities in the second half of the year as they rebuilt their balance sheets and sought funding. Sovereign wealth funds based in Asia and the Middle East invested heavily in leading international banks. Meanwhile, the US government initiated a program to freeze subprime mortgage rates under certain conditions with the goal of limiting the increase of foreclosures due to payment defaults. The overall asset-backed securities market remained difficult during 4Q07, and there were further valuation reductions on residential and commercial mortgage-backed securities. Valuations of residential mortgage- backed securities reflected the deterioration in the US housing sector, increased payment defaults and the related actions of the ratings agencies. Valuations of commercial mortgage-backed securities decreased significantly toward the end of the quarter as a result of widening credit spreads, primarily reflecting concerns of decelerating economic growth.

Global equities and equity derivatives volumes in 4Q07 were higher than in 4Q06, but lower than in 3Q07. The initial public offering backlog increased to USD 36 billion, and the total issuance backlog was at USD 37 billion, up 93% compared to the end of last year. Deal activity for mergers and acquisitions was robust, with global announced mergers and acquisitions volumes up 24% compared to 4Q06 and 11% compared to 3Q07. Completed mergers and acquisitions volumes saw similar trends with both global and European volumes up 25% and 29%, respectively, compared to 4Q06.

Global bond market volumes continued to rise in November with a setback in December 2007. The steepening of the yield curves in the US and Europe was driven mainly by spread widening in the high-yield segment, also reflecting the more conservative credit standards applied by banks and other financial institutions.

Market volumes (growth in %)
		Global		Europe
	QoQ	YoY	QoQ	YoY
Equity trading volume1	(19.4)	39.5	(20.2)	41.7
Fixed income trading volume2	5.0	14.0	14.0	13.0
Announced mergers and acquisitions3	11.5	24.2	52.9	37.7
Completed mergers and acquisitions3	17.7	25.5	37.9	29.1
Equity underwriting3	64.4	15.6	58.3	22.2
Debt underwriting3	7.8	(0.2)	(13.5)	(4.5)
Syndicated lending - Investment-grade3	(23.4)	19.7	–	–
1    Virt-x, Euronext, LSE, Deutsche Börse, NYSE, Hong Kong Stock Exchange      2    Deutsche Börse, Federal Reserve Bank of New York      3    Dealogic

Credit Suisse Results

Credit Suisse

Our consolidated statements of income include minority interests without significant economic interest, which do not impact net income, but significantly increase reported net revenues and income from continuing operations before taxes. Hence, we separate these minority interests from our consolidated performance and report the remainder as Core Results.

Core Results

Core Results include the performance of our three operating segments Investment Banking, Private Banking and Asset Management as well as Corporate Center, including eliminations and consolidation adjustments. Core Results represent the performance of our integrated banking organization.

Key Performance Indicators

Our Credit Suisse Key Performance Indicators (KPI) measure our progress as an integrated banking organization. We focus on growth, efficiency, shareholder return and capital strength to manage our business for long-term sustainable value creation.

Credit Suisse

In 4Q07, income from continuing operations was CHF 1,329 million, down 49% compared to a strong 4Q06 and up 2% from 3Q07. Despite the challenging environment in the second half of 2007, income from continuing operations for 2007 was a record CHF 8,549 million and return on equity was 19.8%.

< td width="3" height="16">

Results
			in / end of			% change				in / end of		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Statements of income (CHF million)
Net interest income	2,156	1,959	1,427	10		51		8,453		6,566		29
Commissions and fees	4,879	4,231	5,069	15		(4)		19,329		17,647		10
Trading revenues	457	(158)	2,956	–		(85)		7,325		9,428		(22)
Other revenues	1,921	810	1,362	137		41		5,805		4,962		17
Net revenues	9,413	6,842	10,814	38		(13)		40,912		38,603		6
Provision for credit losses	203	4	(20)	–		–		240		(111)		–
Compensation and benefits	3,468	2,392	4,100	45		(15)		16,219		15,697		3
General and administrative expenses	2,022	1,743	1,815	16		11		6,916		6,445		7
Commission expenses	694	667	605	4		15		2,612		2,272		15
Total other operating expenses	2,716	2,410	2,420	13		12		9,528		8,717		9
Total operating expenses	6,184	4,802	6,520	29	(5)		25,747		24,414		5
Income from continuing operations before taxes	3,026	2,036	4,314	49		(30)		14,925		14,300		4
Income tax expense	(15)	(32)	805	(53)	< /font>	–		1,638		2,389		(31)
Minority interests	1,712	766	910	123		88		4,738		3,630		31
Income from continuing operations	1,329	1,302	2,599	2		(49)		8,549		8,281		3
Income from discontinued operations	0	0	2,074	–		(100)		0		3,070		(100)
Extraordinary items	0	0	0	–		–		0		(24)		100
Net income	1,329	1,302	4,673	2		(72)		8,549		11,327		(25)
Earnings per share (CHF)
Basic earnings per share from continuing operations	1.30	1.27	2.42	2		(46)		8.18		7.53		9
Basic earnings per share	1.30	1.27	4.35	2		(70)		8.18		10.30		(21)
Diluted earnings per share from continuing operations	1.21	1.18	2.29	3		(47)		7.65		7.19		6
Diluted earnings per share	1.21	1.18	4.12	3		(71)		7.65		9.83		(22)
Return on equity (%)
Return on equity	12.4	12.4	44.1	–		–		19.8		27.5		–
Return on tangible equity1	16.8	17.1	60.9	–		–		26.9		40.6		–
BIS statistics
Risk-weighted assets (CHF million)	312,068	298,688	253,676	4		23		312,068		253,676		23
Tier 1 capital (CHF million)	35,518	35,888	35,147	(1)		1		35,518		35,147		1
Total capital (CHF million)	45,883	45,682	46,764	0		(2)		45,883		46,764		(2)
Tier 1 ratio (%)	11.4	12.0	13.9	–		–		11.4		13.9		–
Total capital ratio (%)	14.7	15.3	18.4	–		–		14.7		18.4		–
Number of employees (full-time equivalents)													< /sup>
Number of employees	48,100	47,200	44,900	2		7		48,100		44,900		7
1    Based on tangible shareholders' equity, which is calculated by deducting goodwill and other intangible assets from total shareholders' equity. Management believes that the return on tangible shareholders' equity is meaningful as it allows consistent measurement of the performance of businesses without regard to whether the businesses were acquired.

Results summary

In 4Q07, income from continuing operations was CHF 1,329 million, down CHF 1,270 million, or 49%, against the strong 4Q06 and up CHF 27 million, or 2%, against 3Q07. Net income in 4Q07 was CHF 1,329 million, down from CHF 4,673 million in 4Q06, which included income from discontinued operations of CHF 2,074 million. Our results in 4Q07, particularly in Investment Banking and Asset Management, reflected adverse effects from the turmoil in the credit markets. However, our focus on risk management enabled us to perform relatively well, limiting losses and exposures in Investment Banking related to the subprime mortgage market. Private Banking delivered further profitable growth. Asset Management was impacted by further valuation reductions on securities purchased from our money market funds. Before these valuation reductions, Asset Management results were strong. Our results also benefited from fair value gains due to the wid ening credit spreads on Credit Suisse debt. Income tax expense benefited from a 4Q07-specific net credit from the re-measurement of uncertain tax positions. The remaining favorable variance to our originally accrued tax rate was due to normal business-driven tax related items. The former was recorded in accordance with FIN 48. The latter included non-taxable income, the streamlining of certain legal entity structures and the geographic mix of pre-tax income, which was partially offset by an increase in the valuation allowance on deferred tax assets attributable to the lower business results in certain entities.

Diluted earnings per share from continuing operations in 4Q07 were CHF 1.21 compared to CHF 2.29 in 4Q06 and CHF 1.18 in 3Q07. Return on equity was 12.4%, compared to 44.1% in 4Q06, which included income from discontinued operations, and 12.4% in 3Q07. Our capital remained strong with a BIS tier 1 ratio of 11.4% as of the end of 4Q07, compared to 13.9% as of the end of 4Q06 and 12.0% as of the end of 3Q07.

For 2007, income from continuing operations was a record CHF 8,549 million and diluted earnings per share were CHF 7.65. Return on equity for 2007 was 19.8%. 2007 net income of CHF 8,549 million was down from CHF 11,327 million in 2006, which included income from discontinued operations of CHF 3,070 million.

Management changes

On January 10, 2008, we announced the appointment of Eric Varvel as Chief Executive Officer (CEO) of the Europe, Middle East and Africa (EMEA) region. In this role, he joins the Executive Board of Credit Suisse and chairs the EMEA Management Committee. Based in London, Eric Varvel assumed his role on February 1, 2008, in addition to his existing responsibilities as Co-Head of the Global Investment Banking department and Head of the Global Markets Solutions Group in Investment Banking. Eric Varvel succeeded Michael Philipp, who stepped down as a member of the Executive Board to assume a new role as Chairman of the Middle East and Africa, focusing on strategic clients in the region, working closely with Eric Varvel.

As announced on September 6, 2007, Kai Nargolwala started on January 1, 2008, in his role as CEO of the Asia Pacific region, succeeding Paul Calello, who was appointed CEO of Investment Banking in May 2007. The regional management team is now complete and we expect this to further accelerate the delivery of our integrated bank.

Core Results

Core Results include the results of our three segments and the Corporate Center. Credit Suisse’s results also include revenues and expenses from the consolidation of certain private equity funds and other entities in which we do not have a significant economic interest (SEI) in such revenues and expenses. The consolidation of these entities does not affect net income as the amounts recorded in net revenues and total operating expenses are offset by corresponding amounts reported as minority interests. In addition, our income tax expense is not affected by these revenues and expenses. These minority interest-related revenues and expenses are reported as “Minority interests without SEI” in the “Credit Suisse and Core Results” table above.

Corporate Center includes parent company operations such as Group financing, expenses for projects sponsored by the Group and certain expenses that have not been allocated to the segments. In addition, Corporate Center includes consolidation and elimination adjustments required to eliminate intercompany revenues and expenses.

Credit Suisse and Core Results
			Core Results			Minority interests without SEI			Credit Suisse
in the period	4Q07	3Q07	4Q06	4Q07	3Q07	4Q06	4Q07	3Q07	4Q06
Statements of income (CHF million)
Net revenues	7,738	6,020	9,816	1,675	822	998	9,413	6,842	10,814
Provision for credit losses	203	4	(20)	0	0	0	203	4	(20)
Compensation and benefits	3,457	2,354	4,047	11	38	53	3,468	2,392	4,100
General and administrative expenses	2,004	1,712	1,797	18	31	18	2,022	1,743	1,815
Commission expenses	694	667	605	0	0	0	694	667	605
Total other operating expenses	2,698	2,379	2,402	18	31	18	2,716	2,410	2,420
Total operating expenses	6,155	4,733	6,449	29	69	71	6,184	4,802	6,520
Income from continuing operations before taxes	1,380	1,283	3,387	1,646	753	927	3,026	2,036	4,314
Income tax expense	(15)	(32)	805	0	0	0	(15)	(32)	805
Minority interests	66	13	(17)	1,646	753	927	1,712	766	910
Income from continuing operations	1,329	1,302	2,599	0	0	0	1,329	1,302	2,599
Income from discontinued operations	0	0	2,074	0	0	0	0	0	2,074
Net income	1,329	1,302	4,673	0	0	0	1,329	1,302	4,673
Statement of income metrics (%)
Compensation/revenue ratio	44.7	39.1	41.2	–	–	–	36.8	35.0	37.9
Non-compensation/revenue ratio	34.9	39.5	24.5	–	–	–	28.9	35.2	22.4
Cost/income ratio	79.5	78.6	65.7	–	–	–	65.7	70.2	60.3
Pre-tax income margin	17.8	21.3	34.5	–	–	–	32.1	29.8	39.9
Tax rate	(1.1)	(2.5)	23.8	–	–	–	(0.5)	(1.6)	18.7
Net income margin from continuing operations	17.2	21.6	26.5	–	–	–	14.1	19.0	24.0
Net income margin	17.2	21.6	47.6	–	–	–	14.1	19.0	43.2

Allocations and funding

Revenue sharing and cost allocation

Responsibility for each product is allocated to a segment, which records all related revenues and expenses. Revenue-sharing and service level agreements govern the compensation received by one segment for generating revenue or providing services on behalf of another. These agreements are negotiated periodically by the relevant segments on a product-by-product basis. The aim of revenue-sharing and service level agreements is to reflect the pricing structure of unrelated third-party transactions. Corporate services and business support in finance, operations, including human resources, legal and compliance, risk management and information technology are provided by the Shared Services area. Shared Services costs are allocated to the segments and Corporate Center based on their requirements and other relevant measures.

Funding

Credit Suisse centrally manages its funding activities. New securities for funding and capital purposes are issued primarily by the Bank. The Bank lends these funds to its operating subsidiaries and affiliates on both a senior and subordinated basis, as needed, the latter typically to meet capital requirements, or as desired by management to support business initiatives. Capital is distributed to the segments considering factors such as regulatory capital requirements, utilized economic capital and the historic and future potential return on capital. Transfer pricing, using market rates, is used to record interest income and expense in each of the segments for this capital and funding. Included in this allocation are gains and losses recorded on the fair value of our own debt.

Developing our footprint in Brazil

Our 4Q07 results reflected the acquisition of a majority interest in Hedging-Griffo, a leading asset management and private banking company in Brazil. Since entering the Brazilian market in 1998, we have continued to develop our market position. Today we are the largest investment bank, the largest stock broker and the third-largest asset manager in Brazil. In September 2007, we were recognized by Euromoney magazine’s “2007 Awards for Excellence” as the leading mergers and acquisitions house in Brazil, and in December 2007, we were ranked number one in Brazil’s equity capital markets league tables and in Brazil’s initial public offering (IPO) league tables. We were also a joint book runner on the USD 3.7 billion offering for the São Paulo Stock Exchange, Latin America’s largest IPO to date.

Our presence reflects our long-term commitment to Brazil and our continued efforts to expand our footprint in high-growth markets globally. Less than a decade ago, Brazil’s economy was in turmoil. In 1999 and 2002, Brazil’s currency, the real, was significantly devalued, interest rates peaked at approximately 50%, risk premiums rose to over 2,400 basis points and equity valuations dropped by 65%. In 2002, Brazil’s government put in place a series of measures to transform the economy. By the end of 2007, benefiting from the strong global economy and higher commodity prices, Brazil had significantly strengthened its foreign exchange reserves, stabilized its currency and reduced its foreign debt. Market capitalization rose to approximately 90% of gross domestic product (GDP), inflation was under control, interest rates declined and GDP growth was 4.5% to 5% per annum.

Much like Brazil’s accomplishment, our commitment is also a success story. Since purchasing the investment bank Garantia in 1998, we have been a dominant player in investment banking and have leveraged our position to drive growth in our asset management and private banking businesses. We now offer a diversified platform of products and services. Our momentum was further strengthened by the acquisition of Hedging-Griffo, which added scale to our onshore asset management and private banking businesses.

We believe our ability to offer clients customized and holistic solutions across Investment Banking, Private Banking and Asset Management gives us an important competitive advantage in further developing our market position and expanding our product offering.

Core Results

In Investment Banking we performed relatively well, as our focus on risk management enabled us to limit losses from the turmoil in credit markets. Results in Private Banking continued to be strong. Asset Management was adversely impacted by further valuation reductions from securities purchased from our money market funds. Before these valuation reductions, Asset Management results were strong. For 4Q07, net income was CHF 1,329 million. For 2007, we delivered record results for net revenues and income from continuing operations.

< td width="3" height="16">

Results
			in / end of			% change				in / end of		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Statements of income (CHF million)
Net interest income	2,130	1,901	1,387	12		54		8,314		6,408		30
Commissions and fees	4,889	4,208	5,089	16		(4)		19,360		17,754		9
Trading revenues	457	(158)	2,956	–		(85)		7,325		9,375		(22)
Other revenues	262	69	384	280		(32)		1,131		1,403		(19)
Net revenues1, 2	7,738	6,020	9,816	29		(21)		36,130		34,940		3
Provision for credit losses	203	4	(20)	–		–		240		(111)		–
Compensation and benefits	3,457	2,354	4,047	47		(15)		16,103		15,644		3
General and administrative expenses	2,004	1,712	1,797	17		12		6,850		6,395	3	7
Commission expenses	694	667	605	4		15		2,612		2,272		15
Total other operating expenses	2,698	2,379	2,402	13		12		9,462		8,667		9
Total operating expenses	6,155	4,733	6,449	30	(5)		25,565		24,311		5
Income from continuing operations before taxes	1,380	1,283	3,387	8		(59)		10,325		10,740		(4)
Income tax expense	(15)	(32)	805	(53)	< /font>	–		1,638		2,389		(31)
Minority interests	66	13	(17)	408		–		138		70		97
Income from continuing operations	1,329	1,302	2,599	2		(49)		8,549		8,281		3
Income from discontinued operations	0	0	2,074	–		(100)		0		3,070		(100)
Extraordinary items	0	0	0	–		–		0		(24)		100
Net income	1,329	1,302	4,673	2		(72)		8,549		11,327		(25)
Statement of income metrics (%)
Compensation/revenue ratio	44.7	39.1	41.2	–		–		44.6		44.8		–
Non-compensation/revenue ratio	34.9	39.5	24.5	–		–		26.2		24.8		–
Cost/income ratio	79.5	78.6	65.7	–		–		70.8		69.6		–
Pre-tax income margin	17.8	21.3	34.5	–		–		28.6		30.7		–
Tax rate	(1.1)	(2.5)	23.8	–		–		15.9		22.2		–
Net income margin from continuing operations	17.2	21.6	26.5	–		–		23.7		23.7		–
Net income margin	17.2	21.6	47.6	–		–		23.7		32.4		–
Number of employees (full-time equivalents)													< /sup>
Number of employees	48,100	47,200	44,900	2		7		48,100		44,900		7
1    Includes valuation reductions in Asset Management of CHF 774 million and CHF 920 million in 4Q07 and 2007, respectively, from securities purchased from our money market funds.      2    Includes valuation reductions in Investment Banking of CHF 1,259 million and CHF 2,010 million in 4Q07 and 2007, respectively, relating to leveraged finance and structured products.      3    Includes CHF 508 million of credits from insurance settlements for litigation and related costs in Investment Banking.

Core Results include the results of our integrated banking organization and exclude revenues and expenses in respect of minority interests in which we do not have significant economic interest.

Results summary

In 4Q07, income from continuing operations was CHF 1,329 million, down CHF 1,270 million, or 49%, against the strong 4Q06 and up CHF 27 million, or 2%, against 3Q07. Net income in 4Q07 was CHF 1,329 million, down from CHF 4,673 million recorded in 4Q06, which included income from discontinued operations of CHF 2,074 million. Net revenues were CHF 7,738 million, down CHF 2,078 million, or 21%, compared to 4Q06, while total operating expenses were CHF 6,155 million, down CHF 294 million, or 5%.

Our Core Results for 4Q07 reflected the turmoil in credit markets, which emerged from the dislocation of the US subprime mortgage market. Net revenues include valuation reductions on structured products and leveraged loan commitments in Investment Banking and securities purchased from our money market funds in Asset Management. These adverse effects were partly offset by continued strong results in Private Banking, demonstrating the benefit of diversification in a more demanding operating environment. Our results include the acquisition of a majority interest in Hedging-Griffo, a leading asset management and private banking company in Brazil. Our results also include fair value gains on Credit Suisse debt, substantially all of which were recorded in Investment Banking. Total operating expenses decreased mainly due to lower performance-related compensation, reflecting lower revenues and an increase in deferred share-based c ompensation for 2007. Income tax expense benefited from a 4Q07-specific net credit from the re-measurement of uncertain tax positions. The remaining favorable variance to our originally accrued tax rate was due to normal business-driven tax related items. The former was recorded in accordance with FIN 48. The latter included non-taxable income, the streamlining of certain legal entity structures and the geographic mix of pre-tax income, which was partially offset by an increase in the valuation allowance on deferred tax assets attributable to the lower business results in certain entities. We had net new asset outflows of CHF 10.5 billion, reflecting primarily inflows of CHF 12.0 billion in Wealth Management and outflows of CHF 24.9 billion in Asset Management, driven mainly by outflows in money market assets of CHF 27.9 billion.

Compared to 3Q07, net income was up CHF 27 million, or 2%. Net revenues were up CHF 1,718 million, or 29%, while total operating expenses were up CHF 1,422 million, or 30%.

Despite the lower results in the second half of the year, we delivered record 2007 net revenues and income from continuing operations. 2007 income from continuing operations reached CHF 8,549 million, up CHF 268 million, or 3%, from 2006, and net revenues were CHF 36,130 million, up CHF 1,190 million, or 3%.

Capital and risk trends

Our consolidated BIS tier 1 ratio under Basel I was 11.4% as of the end of 4Q07, a decrease from 12.0% as of the end of 3Q07. The decrease was driven primarily by an increase in risk-weighted assets and a decrease in our tier 1 capital. As of the end of 4Q07, the BIS tier 1 ratio under Basel II would have been approximately 120 basis points lower.

At the Annual General Meeting on May 4, 2007, the shareholders approved the launch of a three-year share buyback program of up to CHF 8 billion. During 4Q07, we repurchased 3.9 million common shares in the amount of CHF 0.3 billion under the new program. As of the end of January 2008, we had repurchased a total of CHF 4.1 billion, or 51%, of the approved CHF 8 billion. As a result of the challenging operating environment, we reduced our share buyback activity in the second half of 2007. Our ability to complete the share buyback program in 2008 is dependent on market conditions.

Our Board of Directors will propose a cash dividend of CHF 2.50 per share for 2007 at the Annual General Meeting on April 25, 2008. The proposal is subject to approval at the Annual General Meeting.

In 4Q07, our overall position risk, measured on the basis of our economic risk capital model, decreased 10% compared to 3Q07, mainly driven by lower real estate and structured assets and fixed income trading exposures. Average Value-at-Risk (VaR) for the Group’s trading books increased to CHF 176 million, primarily reflecting the increased market volatility.

For further information on capital and risk trends, refer to “Balance Sheet, Capital and Risk.”

Initiatives and achievements

Despite the challenging market environment, we continued to implement our strategic agenda.

– We completed the acquisition of a majority interest in Hedging-Griffo, a leading asset management and private banking company in Brazil. The acquisition supports our integrated bank strategy by adding significant scale to our onshore activities, further enhancing our leading market position in Brazil (see “Developing our footprint in Brazil” on page 13).

– We expanded our wealth management footprint in various locations, including the launch of onshore activities in Austria and Israel.

– In New York, we partnered with the Mercantile Exchange in the launch of The Green Exchange, a comprehensive global environmental marketplace of contracts for carbon dioxide, renewable energy and other major environmental commodities. In recognition of the increasing importance of environmental issues to our clients, we also announced in 4Q07 the formation of the Environmental Business Group, which is focused on establishing strategic platforms with leading environmental companies and innovative products for our clients.

– To further develop our human capital, we announced a new partnership with The Chinese University of Hong Kong to offer a diploma in Global Finance to our employees in Asia Pacific.

– In Hong Kong, we announced the relocation of all our offices to the International Commerce Centre. The move includes a 40% increase in office space and reflects our ambitions for the Asian market. By 2011, all employees in Hong Kong will work under one roof, creating further opportunities for synergies and collaboration.

Results detail

The following provides a comparison of our 4Q07 results versus 4Q06 (YoY) and versus 3Q07 (QoQ).

Net revenues

In managing the business, revenues are evaluated in the aggregate, including an assessment of trading gains and losses and the related interest income and expense from financing and hedging positions. For this reason, individual revenue categories may not be indicative of performance.

YoY: Down 21% from CHF 9,816 million to CHF 7,738 million

The decrease reflected lower results driven by valuation reductions on the structured products and leveraged finance businesses in Investment Banking and on securities purchased from our money market funds in Asset Management, reflecting the ongoing challenging market conditions, partially offset by a good performance in Private Banking. Net revenues benefited from lower funding costs, including fair value gains due to the widening of credit spreads on Credit Suisse debt.

Investment Banking was adversely impacted by the continued dislocation in the mortgage and credit markets. Revenues reflected valuation reductions in our structured products and leveraged finance businesses of CHF 1,259 million. Fixed income trading revenues were significantly lower compared to 4Q06, reflecting significant valuation reductions, partly offset by strong performances in the interest rate products, fixed income proprietary trading and foreign exchange businesses. Equity trading benefited from strong performances in our global cash, prime services and derivatives businesses. Fixed income and equity trading also benefited from fair value gains of CHF 489 million on Credit Suisse debt.

In Private Banking, we achieved record net revenues. Net interest income increased, benefiting mainly from lower funding costs and higher liability volumes and margins, offset in part by decreased asset margins due to ongoing competitive pressure. Total non-interest income increased mainly as a result of higher commissions and fees, particularly from managed investment products and performance-based fees from Hedging-Griffo.

In Asset Management, net revenues were down, mainly reflecting valuation reductions of CHF 774 million from securities purchased from our money market funds. Before these valuation reductions, income from continuing operations before taxes was CHF 527 million in 4Q07, including a strong increase in private equity and other investment-related gains.

QoQ: Up 29% from CHF 6,020 million to CHF 7,738 million

In Investment Banking, net revenues increased, driven by higher equity trading results as the business recovered from equity proprietary trading losses in 3Q07.

In Private Banking, higher net revenues reflected increased total non-interest income, mainly due to higher commissions and fees, including the performance-based fees.

In Asset Management, net revenues were down, mainly reflecting the valuation reductions, offset in part by increased private equity and other investment-related gains.

Provision for credit losses

YoY: From CHF (20) million to CHF 203 million

The increase was due primarily to higher provisions relating to a guarantee provided in a prior year to a third-party bank by Investment Banking.

QoQ: From CHF 4 million to CHF 203 million

The increase was due primarily to the guarantee.

Operating expenses

Compensation and benefits

YoY: Down 15% from CHF 4,047 million to CHF 3,457 million

The decrease was due primarily to lower performance-related compensation reflecting lower revenues and an increase in deferred share-based compensation for 2007, partly offset by an increase in salaries and benefits as a result of the increase in headcount.

QoQ: Up 47% from CHF 2,354 million to CHF 3,457 million

The increase was due primarily to higher performance-related compensation reflecting higher revenues, partly offset by an increase in deferred share-based compensation for 2007.

General and administrative expenses

YoY: Up 12% from CHF 1,797 million to CHF 2,004 million

The increase was primarily due to delayed or cancelled transactions related to the current market conditions, which resulted in higher professional fees and lower recoveries from client-related travel and entertainment expenses in Investment Banking. Front and back office infrastructure costs increased in Private Banking, reflecting the continued international expansion and marketing and sales activities in Wealth Management. Non-credit-related provisions increased in Investment Banking and Private Banking, partly reflecting releases in 4Q06. Professional fees in Asset Management also increased.

QoQ: Up 17% from CHF 1,712 million to CHF 2,004 million

The increase primarily reflected higher professional fees, non-credit-related provisions and travel and entertainment costs.

Commission expenses

YoY: Up 15% from CHF 605 million to CHF 694 million

The increase primarily reflected increased trading and business volumes.

QoQ: Up 4% from CHF 667 million to CHF 694 million

The increase primarily reflected increased trading and business volumes.

Income tax expense

YoY: From CHF 805 million to CHF (15) million

The effective tax rate was (1.1)% in 4Q07 compared to 23.8% in 4Q06. The reduction in the tax rate was due to a 4Q07-specific net credit of CHF 83 million from the re-measurement of uncertain tax positions. The remaining favorable variance to our originally accrued tax rate of 22% was due to normal business-driven tax related items. The former was recorded in accordance with Financial Accounting Standards Board (FASB) Interpretation (FIN) No.48, “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No.109” (FIN 48). The latter included non-taxable income, the streamlining of certain legal entity structures and the geographic mix of pre-tax income, which was partially offset by an increase in the valuation allowance on deferred tax assets of CHF 527 million attributable to the lower business results in certain entities.

QoQ: From CHF (32) million to CHF (15) million

3Q07 reflected the recording of previously unrecognized deferred tax assets of CHF 315 million.

Personnel

The number of employees increased by approximately 900 full-time equivalents compared to the end of 3Q07. The increase was driven primarily by recruitment in Investment Banking and additional relationship managers in targeted markets of Wealth Management. In 4Q07, as part of our year-end review process, and continuing in 1Q08, we selectively reduced headcount in certain Investment Banking businesses to reflect the market conditions.

Number of employees by segment
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Number of employees by segment (full-time equivalents)
Investment Banking	20,600	20,300	18,700	1		10
Wealth Management	14,300	13,900	13,400	3		7
Corporate & Retail Banking	8,900	8,900	8,800	0		1
Private Banking	23,200	22,800	22,200	2		5
Asset Management	3,600	3,400	3,400	6		6
Corporate Center	700	700	600	0	< /td>	17
Number of employees	48,100	47,200	44,900	2		7

Key Performance Indicators

To benchmark our achievements, we have defined a set of integrated bank performance indicators for which we have targets to be achieved over a three to five year period throughout the market cycles. Although market conditions have been challenging, we continue to be optimistic in achieving our targets over the longer term.

Growth

For earnings per share, we target a double-digit annual percentage growth. Diluted earnings per share growth from continuing operations was (47.2)% in 4Q07 and 6.4% in 2007.

For net new assets, we target a growth rate above 6%. In 4Q07, we recorded an annualized net new asset growth rate of (2.7)% and a rolling four-quarter average growth rate of 3.4%. The annualized net new asset growth rate was 3.4% in 2007.

Efficiency

We target a cost/income ratio of 65%. Our Core Results cost/income ratio was 79.5% for 4Q07 and 70.8% in 2007.

Performance

For return on equity, we target an annual rate of return of above 20%. In 4Q07, we achieved 12.4%. In 2007, we achieved 19.8%.

For total shareholder return, we target superior share price appreciation plus dividends compared to our peer group. For 2007, annualized total shareholder return was (17.8)%.

Capital strength

The BIS tier 1 ratio under Basel I was 11.4% as of the end of 4Q07. As of the end of 4Q07, the BIS tier 1 ratio under Basel II would have been approximately 120 basis points lower.

						in / end of
	4Q07		2007	2006	2005	2004
Growth (%)
YoY diluted earnings per share growth from continuing operations	(47.2)		6.4	84.4	(7.8)	53.8
Net new asset growth (annualized)	(2.7)		3.4	7.2	5.4	2.7
Net new asset growth (rolling four-quarter average)	3.4		3.4	7.2	5.4	2.7
Efficiency (%)
Core Results cost/income ratio	79.5		70.8	69.6	81.6	75.4
Return (%)
Return on equity (annualized)	12.4		19.8	27.5	15.4	15.9
Total shareholder return (annualized)	–	1	(17.8)	30.5	44.2	6.8
Capital strength (%)
Basel I BIS tier 1 ratio	11.4		11.4	13.9	11.3	12.3
1    Not applicable as total shareholder return is calculated on a year-to-date basis.

Core Results

Investment Banking

Investment Banking comprises the performance of our trading, underwriting and advisory franchise for which we aspire to a mid-term pre-tax income margin of above 30%.

Private Banking

Private Banking encompasses the results of our Wealth Management and Corporate & Retail Banking businesses.

Wealth Management

Wealth Management generates recurring revenues from assets under management and loans and transaction-based revenues from client trading and other service offerings. Across the cycle, we target a pre-tax income margin of above 40% and net new asset growth of 6%.

Corporate & Retail Banking

Corporate & Retail Banking derives net interest income from commercial and consumer loans, as well as non-interest revenues from various service offerings. Our ambition is to generate a pre-tax income margin of above 40% across the cycle.

Asset Management

Asset Management records management and performance fees from the entire range of asset classes, managing both traditional and alternative investments. We strive for a mid-term pre-tax income margin of above 35%.

Investment Banking

During 4Q07, Investment Banking was profitable with income from continuing operations before taxes of CHF 328 million. Net revenues were up from 3Q07, despite further valuation reductions in the structured products and leveraged finance businesses. Due to the challenging and volatile operating environment in the second half of the year, net revenues of CHF 20,135 million and income from continuing operations before taxes of CHF 4,826 million for 2007 declined from 2006 levels.

< td width="3" height="16">< td width="3" height="16">

Results
			in / end of			% change				in / end of		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Statements of income (CHF million)
Net revenues	3,918	2,097	6,085	87		(36)		20,135		20,469		(2)
Provision for credit losses	210	20	20	–	–		300		(38)		–
Compensation and benefits	2,080	839	2,566	148		(19)		10,191		10,261		(1)
General and administrative expenses	941	864	847	9		11		3,435		3,077	1	12
Commission expenses	359	368	310	(2)		16		1,383		1,218		14
Total other operating expenses	1,300	1,232	1,157	6		12		4,818		4,295		12
Total operating expenses	3,380	2,071	3,723	63	(9)		15,009		14,556		3
Income from continuing operations before taxes	328	6	2,342	–		(86)		4,826		5,951		(19)
Statement of income metrics (%)
Compensation/revenue ratio	53.1	40.0	42.2	–		–		50.6		50.1		–
Non-compensation/revenue ratio	33.2	58.8	19.0	–		–		23.9		21.0		–
Cost/income ratio	86.3	98.8	61.2	–		–		74.5		71.1		–
Pre-tax income margin	8.4	0.3	38.5	–		–		24.0		29.1		–
Utilized economic capital and return
Average utilized economic capital (CHF million)	19,182	19,111	19,087	0		0		18,940		18,026		5
Pre-tax return on average utilized economic capital (%)2	7.9	1.3	51.4	–		–		26.6		35.4		–
Balance sheet statistics (CHF million)
Total assets	1,141,778	1,156,573	1,046,557	(1)		9		1,141,778		1,046,557		9
Net loans	64,892	53,097	44,285	22		47		64,892		44,285		47
Goodwill	7,465	7,551	7,809	(1)	< /td>	(4)		7,465		7,809		(4)
Number of employees (full-time equivalents)													< /sup>
Number of employees	20,600	20,300	18,700	1		10		20,600		18,700		10
1    Includes CHF 508 million of credits from insurance settlements for litigation and related costs.      2    Calculated using a return excluding interest costs for allocated goodwill.

Results (continued)
				in		% change			in	% change
	4Q07		3Q07	4Q06	QoQ	YoY	2007		2006	YoY
Net revenue detail (CHF million)
Debt underwriting	341	1	85	686	301	(50)	1,864	1	2,206	(16)
Equity underwriting	393		327	484	20	(19)	1,444		1,270	14
Total underwriting	734		412	1,170	78	(37)	3,308		3,476	(5)
Advisory and other fees	670		440	785	52	(15)	2,253		1,900	19
Total underwriting and advisory	1,404		852	1,955	65< /td>	(28)	5,561		5,376	3
Fixed income trading	693	2	514	2,755	35	(75)	7,261	2	9,598	(24)
Equity trading	2,068		1,037	1,596	99	30	7,751		5,881	32
Total trading	2,761		1,551	4,351	78	(37)	15,012		15,479	(3)
Other	(247)	3	(306)	(221)	(19)	12	(438)	3	(386)	13
Net revenues	3,918		2,097	6,085	87	(36)	20,135		20,469	(2)
Average one-day, 99% Value-at-Risk (CHF million)												< sup>
Interest rate and credit spread	103		72	48	43	115	72		56	29
Foreign exchange	38		22	19	73	100	26		19	37
Commodity	22		18	12	22	83	17		10	70
Equity	90		71	57	27	58	80		59	36
Diversification benefit	(81)		(88)	(65)	(8)	25	(81)		(65)	25
Average one-day, 99% Value-at-Risk	172		95	71	81	142	114		79	44	< /td>
1    Includes CHF 16 million and CHF 380 million of net valuation reductions (including hedges) on asset-backed securities CDO origination assets and CHF 23 million and CHF 31 million of fee revenues from the leveraged finance business in 4Q07 and 2007, respectively.      2    Includes CHF 864 million and CHF 1,067 million of net valuation reductions (including fees, hedges and interest on funded positions) on CMBS and RMBS and CHF 54 million and CHF 311 million of net valuation reductions (including fees, hedges, interest on funded positions and recoveries) on leveraged finance loan commitments in 4Q07 and 2007, respectively. Also includes CHF 148 million of net valuation reductions (including hedges) in 4Q07 and CHF 272 million of net valuation gains (including hedges) in 2007 on asset-backed securities CDO warehousing and synthetic CDO assets. &nbs p;    3    Includes CHF 200 million and CHF 555 million of net valuation reductions (including fees, hedges, interest on funded positions and recoveries) on bridge loan commitments in 4Q07 and 2007, respectively.

Operating environment

The operating environment remained challenging during 4Q07. The dislocation in the US subprime mortgage market continued to extend across sectors and asset classes. There were further price declines in residential and commercial mortgages, municipal bonds and the high-yield and leveraged loan markets. Credit spreads widened in both the investment-grade and non-investment-grade sectors and the asset-backed (ABX) and commercial mortgage-backed (CMBX) indices declined in value. The further deterioration in credit markets, coupled with continued diminished liquidity in money markets, made both leveraged finance and commercial mortgage-backed securities (CMBS) transactions more challenging. The CMBS market remained weak in Europe, although there was some activity in the US. As a result of this environment, new issue activity was minimal across structured products. Certain businesses, including interest rate products, continued to benefit from declining interest rates, a steeper yield curve and the overall flight to quality.

Most major equity indices were down in the quarter due to continued uncertainty regarding US and global economic growth prospects. Equity market volatility, as indicated by the Chicago Board Options Exchange Volatility Index (VIX), was up and contributed to increased trading volumes. Overall, customer activity in both primary and secondary markets remained relatively robust across much of the global market.

Investment banking activity improved versus 3Q07. Completed mergers and acquisitions, and new issuance volumes in investment-grade, equity and high-yield underwriting, were all ahead of 3Q07 levels.

Results summary

In 4Q07, income from continuing operations before taxes was CHF 328 million, down CHF 2,014 million, or 86%, compared to a strong 4Q06. Net revenues were CHF 3,918 million, down CHF 2,167 million, or 36%, due in large part to the impact of the current credit market dislocations on our fixed income businesses, partly offset by strong equity trading revenues. Total operating expenses were CHF 3,380 million, down CHF 343 million, or 9%, due primarily to a decrease in compensation and benefits expenses reflecting lower net revenues and an increase in deferred share-based compensation for 2007.

Compared to 3Q07, income from continuing operations before taxes increased CHF 322 million. Net revenues were up CHF 1,821 million, or 87%, with higher revenues in several major business areas. Total operating expenses were up CHF 1,309 million, or 63%, due primarily to higher compensation and benefits expenses reflecting higher net revenues following a weak 3Q07.

Results in 4Q07 were negatively impacted by the continued dislocation in the structured products and credit markets, which led to significantly lower fixed income trading results compared to 4Q06, partly offset by strong performances in the interest rate products, fixed income proprietary trading and foreign exchange businesses.

Equity trading benefited from strong performances in the global cash, prime services and derivatives businesses. Equity proprietary trading recovered from losses in 3Q07 and had a profitable quarter. Fixed income and equity trading also benefited from fair value gains of CHF 489 million due to widening credit spreads on Credit Suisse debt. Our underwriting and advisory businesses had lower revenues compared to 4Q06, but improved compared to 3Q07.

Provision for credit losses increased primarily due to higher provisions relating to a guarantee provided in a prior year to a third-party bank.

For 2007, income from continuing operations before taxes was CHF 4,826 million, down CHF 1,125 million, or 19%, compared to 2006. Net revenues were CHF 20,135 million, down CHF 334 million, compared to 2006. We achieved higher revenues in equity trading, equity underwriting and advisory and other fees, but had significantly lower revenues in fixed income trading and debt underwriting, reflecting the severe market dislocations in the second half of 2007. Total operating expenses increased 3%, primarily reflecting credits from insurance settlements for litigation and related costs of CHF 508 million in 2006. The weakening of the average rate of the US dollar against the Swiss franc adversely affected revenues and favorably impacted expenses. Net revenues were up 2% and total operating expenses were up 7% in US dollar terms.

Impact on results of the events in the mortgage and credit markets

In 4Q07, the continued dislocation in the structured products and credit markets led to significantly lower revenues in our leveraged finance and structured products businesses, including CMBS, residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDO). Our leveraged finance and structured products businesses had net valuation reductions of CHF 1,259 million and CHF 2,010 million in 4Q07 and 2007, respectively.

Leveraged Finance

Our leveraged finance business had net valuation reductions (including fees, hedges, interest on funded positions and recoveries) of CHF 231 million in 4Q07. Our gross valuation reductions (net of fees and terminations) were CHF 670 million. Our unfunded non-investment grade loan commitments (both leveraged loan and bridge) were CHF 25.3 billion (USD 22.4 billion) as of the end of 4Q07 versus CHF 52.3 billion (USD 44.7 billion) as of the end of 3Q07. Our funded non-investment grade loans (both leveraged loan and bridge) were CHF 10.7 billion (USD 9.5 billion) as of the end of 4Q07 versus CHF 6.3 billion (USD 5.4 billion) as of the end of 3Q07. The majority of our funded and unfunded loan commitments exposure is to large cap issuers with historically stable cash flows and substantial assets.

Leveraged finance revenues, including both origination and trading activities, totaled CHF 1.0 billion in 2007 compared to CHF 2.6 billion in 2006, reflecting the market dislocation in the second half of 2007.

Structured Products

Our CMBS business had net valuation reductions (including fees, hedges and interest on funded positions) of CHF 384 million in 4Q07. Our gross valuation reductions (net of fees) were CHF 737 million. Our CMBS origination gross exposure was CHF 25.9 billion (USD 22.9 billion) as of the end of 4Q07 versus CHF 35.9 billion (USD 30.7 billion) as of the end of 3Q07. The vast majority of our loans are secured by stable, high quality, income-producing real estate to a diverse range of borrowers in the US, Europe and Asia.

Our RMBS business had net valuation reductions (including fees, hedges and interest on funded positions) of CHF 480 million in 4Q07. Within our RMBS business, we had net US subprime exposure of CHF 1.6 billion (USD 1.4 billion) as of the end of 4Q07 versus CHF 3.9 billion (USD 3.3 billion) as of the end of 3Q07. Our other RMBS non-agency exposure was CHF 7.1 billion (USD 6.3 billion) as of the end of 4Q07 versus CHF 12.4 billion (USD 10.6 billion) as of the end of 3Q07. Of this amount, our US Alt-A exposure was CHF 2.8 billion (USD 2.5 billion) as of the end of 4Q07 versus CHF 7.0 billion (USD 6.0 billion) as of the end of 3Q07.

Our asset-backed securities CDO origination, warehousing and synthetic businesses had net valuation reductions (including hedges) of CHF 164 million in 4Q07, net of the results from certain related trading activities. Our CDO business had net subprime exposure of CHF 2.7 billion (USD 2.4 billion) as of the end of 4Q07 versus CHF 2.3 billion (USD 2.0 billion) as of the end of 3Q07.

Combined revenues from these and related structured products businesses totaled CHF 381 million in 2007 compared to CHF 3.1 billion in 2006.

Performance indicators

Pre-tax income margin (KPI)

Our mid-term goal is a pre-tax income margin of 30% or greater. The 4Q07 pre-tax income margin was 8.4% compared to 38.5% in 4Q06 and 0.3% in 3Q07, reflecting the difficult operating environment. The 2007 pre-tax income margin was 24.0% compared to 29.1% for 2006.

Compensation/revenue ratio

The 4Q07 compensation/revenue ratio was 53.1% compared to 42.2% in 4Q06, reflecting a significantly higher level of revenues in 4Q06. Compared to 40.0% in 3Q07, the 4Q07 compensation/revenue ratio was higher, primarily reflecting higher performance-based compensation due to increased revenues. The 2007 compensation/revenue ratio was 50.6% compared to 50.1% for 2006, with discretionary bonuses representing a significant portion. Compensation and benefits reflected an increase in deferred share-based compensation for 2007. Compensation and benefits for a given year are determined by the strength and breadth of the business results, staffing levels and the impact of share-based compensation programs.

Value-at-Risk

The 4Q07 average one-day, 99% VaR was CHF 172 million compared to CHF 71 million in 4Q06 and CHF 95 million in 3Q07, primarily reflecting the increase in market volatility. For further information on VaR for Credit Suisse, refer to “Risk Management.”

Pre-tax return on average utilized economic capital

The 4Q07 pre-tax return on average utilized economic capital was 7.9% compared to 51.4% in 4Q06 and 1.3% in 3Q07. The 2007 pre-tax return on average utilized economic capital was 26.6% compared to 35.4% for 2006.

Significant transactions and achievements

We executed a number of significant transactions, reflecting the breadth and diversity of our investment banking franchise:

– Debt capital markets: We arranged key financings for a diverse set of clients, including Houghton Mifflin Riverdeep Group PLC (global provider of educational solutions), Energy Future Holdings Corp. (formerly TXU Corp., US energy company) and Fiserv, Inc. (US technology solutions provider).

– Equity capital markets: We executed the initial public offerings for Bovespa Holding (operator of Brazil’s largest stock exchange), Eurasian Natural Resource Corporation PLC (global diversified mining company), NetSuite (global web-based business management application provider) and Iberdrola Renovables (Spanish renewable energy company).

– Mergers & acquisitions: We advised on a number of key transactions that were announced in 4Q07, including the sale of Grant Prideco (global oil and gas parts manufacturer) to National Oilwell Varco, Petersen Energía’s (affiliate of Grupo Petersen, a diversified holding company in Argentina) acquisition of YPF Sociedad Anónima from Repsol YPF, the sale of The Tokyo Star Bank (Japanese bank) by Lone Star Funds (private equity firm) to an investor group led by Advantage Partners and Rank Group Holdings Ltd.’s (New Zealand-based investment company) acquisition of Alcoa’s packaging and consumer businesses.

We received several industry awards and expanded our ability to serve certain geographic and product markets:

– Credit Suisse was recognized as “Leveraged Finance House of the Year” by International Financing Review (IFR) which noted Credit Suisse’s market-leading innovation, focus on execution and strong investor relationships. This follows recognition as “Best Leveraged Finance House” of 2007 from Euromoney and The Banker earlier this year and “High-Yield Bond House of the Year” from Financial News in November 2007. These awards demonstrate the Bank’s position as the leading leveraged finance franchise in a particularly challenging year.

– Credit Suisse won “Swiss Franc Bond House of the Year” by IFR, an award received by Credit Suisse in five of the past seven years.

– Credit Suisse ranked first in European convertible bonds for the third year in a row and first in Asian (non-Japan) convertibles for the second year in a row in Greenwich Associates’ annual survey. This recognition closely follows our recent success in The Banker’s 2007 Investment Banking Awards, in which Credit Suisse was awarded “Best Convertibles House”.

– Credit Suisse won several country, product and deal awards in The Asset’s Asian 2007 Awards, including “Best Foreign Investment Bank” in Indonesia, Korea and Vietnam.

League table positions
				in / end of
	4Q07	2007	2006	2005
League table rank / market share (%)  1
Global fee pool2	8 / 5%	7 / 5%	4 / 6%	7 / 5%
High-yield3	2 / 14%	2 / 11%	3 / 12%	3 / 11%	< /sup>
Investment-grade3	8 / 4%	13 / 3%	13 / 3%	10 / 4%	< sup>
Asset-backed3	12 / 2%	10 / 5%	8 / 5%	– / –%
Mortgage-backed3	5 / 6%	4 / 7%	5 / 7%	– / –%
Total debt underwriting3	12 / 4%	11 / 4%	8 / 5%	6 / 5%
IPO2	6 / 4%	3 / 8%	4 / 7%	1 / 10%
Follow-on2	8 / 3%	7 / 6%	7 / 6%	10 / 3%
Convertible2	7 / 4%	9 / 5%	11 / 4%	10 / 4%
Total equity underwriting2	8 / 4%	7 / 6%	7 / 6%	8 / 5%
Announced mergers and acquisitions3	7 / 29%	6 / 20%	6 / 19%	10 / 11%
Completed mergers and acquisitions3	8 / 20%	8 / 18%	8 / 15%	8 / 14%
1    Volume-based, except Global fee pool      2    Dealogic      3    Thomson Financial

Results detail

The following provides a comparison of our 4Q07 results versus 4Q06 (YoY) and versus 3Q07 (QoQ).

Net revenues

Debt underwriting

YoY: Down 50% from CHF 686 million to CHF 341 million

The decrease primarily reflected weaker performance in the leveraged finance and structured products businesses. The continued weakness in the credit markets resulted in lower levels of high-yield and leveraged-lending issuance activity in 4Q07. The structured products businesses were negatively impacted by valuation reductions on our CDO assets.

QoQ: Up 301% from CHF 85 million to CHF 341 million

The increase primarily reflected improved performance in the leveraged finance business and lower levels of valuation reductions on our CDO assets.

Equity underwriting

YoY: Down 19% from CHF 484 million to CHF 393 million

The decrease was due primarily to several large, high-fee transactions in 4Q06. Higher revenues from our Latin America cash business were offset by lower results from the cash business in other regions.

QoQ:Up 20% from CHF 327 million to CHF 393 million

The increase was due primarily to a substantially higher level of industry-wide equity issuance activity compared to 3Q07.

Advisory and other fees

YoY: Down 15% from CHF 785 million to CHF 670 million

The decrease was due to lower levels of global mergers and acquisitions activity than in 4Q06, which included several large, high-fee transactions.

QoQ: Up 52% from CHF 440 million to CHF 670 million

The increase was driven primarily by significantly higher revenues in the private fund group, which had a seasonally strong 4Q07. The private fund group raises capital for hedge funds, private equity and real estate funds.

Fixed income trading

YoY: Down 75% from CHF 2,755 million to CHF 693 million

The decrease was driven primarily by valuation reductions in both the structured products and leveraged finance businesses. The structured products results reflected valuation reductions on our residential and commercial loan assets and CDO warehouse assets, stemming from further price declines, decreased liquidity in the market and limited trading activity. The leveraged finance losses reflected valuation reductions on our loan commitments. The US high-grade business was negatively affected by widening credit spreads, largely on financial and mortgage institutions, and decreased market liquidity. The commodities business recorded lower revenues due to poor trading performance in the power and gas sectors. We continued to make good progress in the development of our alliance with Glencore International in the oil and metals sectors, with the goal of achieving a more diversified and balanced commodities platform. These resu lts were partly offset by solid performances in interest rate products in the US and Europe, fixed income proprietary trading and foreign exchange. In addition, fixed income trading benefited from fair value gains of CHF 440 million on Credit Suisse debt.

QoQ: Up 35% from CHF 514 million to CHF 693 million

The increase was driven by lower levels of valuation reductions in the leveraged finance business, as well as improved performance from the commodities business, fixed income proprietary trading and foreign exchange. These results were partly offset by valuation reductions in the structured products businesses and lower revenues in interest rate products.

Equity trading

YoY: Up 30% from CHF 1,596 million to CHF 2,068 million

The increase reflected strong performances across our cash, prime services and derivatives businesses, offset by lower revenues in equity proprietary trading. The cash business benefited from increased deal activity, trading volumes and client flows, as well as the continued strong performance of our Advanced Execution Services business. Prime services revenues increased, reflecting growth in client balances and new client mandates. Equity derivatives delivered solid results in all regions. Equity trading also benefited from fair value gains of CHF 49 million on Credit Suisse debt.

QoQ: Up 99% from CHF 1,037 million to CHF 2,068 million

The increase was driven primarily by improved results in equity proprietary trading as the business returned to profitability in 4Q07.

Other

YoY: Down from CHF (221) million to CHF (247) million

The decrease was due to valuation reductions on our bridge commitments.

QoQ: Up from CHF (306) million to CHF (247) million

The increase was due to lower levels of valuation reductions on our bridge commitments, partly offset by lower gains from private equity investments not managed as part of Asset Management.

Provision for credit losses

YoY: Up from CHF 20 million to CHF 210 million

The increase was due primarily to higher provisions relating to a guarantee provided in a prior year to a third-party bank.

QoQ: Up from CHF 20 million to CHF 210 million

The increase was due primarily to the guarantee.

Operating expenses

Compensation and benefits

YoY: Down 19% from CHF 2,566 million to CHF 2,080 million

The decrease was due primarily to lower performance-related compensation reflecting lower revenues and an increase in deferred share-based compensation for 2007.

QoQ: Up 148% from CHF 839 million to CHF 2,080 million

The increase was due primarily to higher performance-related compensation reflecting higher revenues, partly offset by the increase in deferred share-based compensation.

General and administrative expenses

YoY:Up 11% from CHF 847 million to CHF 941 million

The increase was primarily due to delayed or cancelled transactions related to the current market conditions, which resulted in higher professional fees and lower recoveries from client-related travel and entertainment expenses. 4Q06 included a credit from insurance settlements and related costs of CHF 34 million.

QoQ: Up 9% from CHF 864 million to CHF 941 million

The increase was due primarily to the increase in professional fees and higher provisions for legal fees.

Commission expenses

YoY: Up 16% from CHF 310 million to CHF 359 million

The increase was driven by higher trading volumes.

QoQ: Down 2% from CHF 368 million to CHF 359 million

The decline was due to the foreign exchange translation impact of the weaker US dollar.

Personnel

The increase was driven primarily by recruitment in fixed income, equity and investment banking. Starting in 4Q07, as part of our year-end review process, and continuing in 1Q08, we selectively reduced headcount in certain businesses, reflecting current market conditions.

Prime services’ contribution to a broader business mix

Over the last five years, we have invested considerable efforts in growing our prime services business and expanding our client base. With our comprehensive offerings, targeted at hedge funds and institutional clients, we achieved strong annual double-digit growth over the last few years. This strong growth reflects our ongoing strategic efforts to diversify our revenue base in Investment Banking. The advantages of a balanced business mix with modest correlation became more important in the challenging market environment in the second half of 2007. Over the last five years, fund balances at Credit Suisse have grown at more than double the rate of the broader market.

Managing investments in today’s financial markets is becoming increasingly complex and competitive. Prime services has developed a strong client base in both the alternative and traditional investment areas by providing access to all products and services within Credit Suisse, as well as benefiting from our strong market position in all regions. Today, 375 employees around the world provide an integrated product and service offering across prime brokerage, financing products, capital services, consulting and risk management. With the ever-increasing pressure to post positive, risk-adjusted absolute returns, our clients not only value our idea generation and products and services but also our open architecture platform, Advanced Prime. This platform allows hedge funds to more easily add prime brokers to facilitate their growth. Addressing the market’s need for enhanced transparency, we developed the first 130/30 i ndex, which provides a performance benchmark for the evolving hedge fund industry. This product was launched in October 2007.

With the expected continued growth of the hedge fund industry, we also expect greater consolidation. Our offerings will continue to evolve as we help clients further diversify across businesses and asset classes, geographies and the liquidity spectrum. We are committed to long-lasting relationships with the leading investment managers of today and tomorrow and we continue to drive innovation as their needs evolve. With the Credit Suisse brand and our integrated business model drawing on recognized expertise in areas valued by clients, we feel prime services is well-positioned to further strengthen and diversify revenues in Investment Banking.

Private Banking

In 4Q07, we achieved record net revenues despite ongoing market turbulence and cautious investor behavior. Income from continuing operations before taxes was CHF 1,377 million, up CHF 234 million, or 20%, from 4Q06. For 2007, income from continuing operations before taxes was a record CHF 5,486 million.

Results
			in / end of			% change				in / end of		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Statements of income (CHF million)
Net revenues	3,478	3,325	2,973	5		17		13,522		11,678		16
Provision for credit losses	(6)	(17)	(41)	(65)		(85)		(59)		(73)		(19)
Compensation and benefits	1,098	1,152	1,037	(5)		6		4,529		4,038		12
General and administrative expenses	768	673	636	14		21		2,670		2,382		12
Commission expenses	241	228	198	6		22		896		735		22
Total other operating expenses	1,009	901	834	12		21		3,566		3,117		14
Total operating expenses	2,107	2,053	1,871	3	13		8,095		7,155		13
Income from continuing operations before taxes	1,377	1,289	1,143	7		20		5,486		4,596		19
Statement of income metrics (%)
Compensation/revenue ratio	31.6	34.6	34.9	–		–		33.5		34.6		–
Non-compensation/revenue ratio	29.0	27.1	28.1	–		–		26.4		26.7		–
Cost/income ratio	60.6	61.7	62.9	–		–		59.9		61.3		–
Pre-tax income margin	39.6	38.8	38.4	–		–		40.6		39.4		–
Utilized economic capital and return
Average utilized economic capital (CHF million)	4,785	4,694	4,865	2		(2)		4,668		5,172		(10)
Pre-tax return on average utilized economic capital (%)1	115.9	110.7	95.7	–		–		118.4		90.4		–
Net revenue detail (CHF million)
Net interest income	1,230	1,224	1,070	0		15		4,788		4,095		17
Total non-interest income	2,248	2,101	1,903	7		18		8,734		7,583		15
Net revenues	3,478	3,325	2,973	5		17		13,522		11,678		16
Balance sheet statistics (CHF million)
Total assets	376,800	370,724	340,741	2		11		376,800		340,741		11
Net loans	175,506	173,349	163,670	1		7		175,506		163,670		7
Goodwill	975	794	791	23		23		975		791		23
Number of employees (full-time equivalents)													< /sup>
Number of employees	23,200	22,800	22,200	2		5		23,200		22,200		5
1    Calculated using a return excluding interest costs for allocated goodwill.

During 4Q07, we continued to face a challenging operating environment characterized by market volatility and ongoing cautious investor behavior. Despite this, we made progress in executing several growth initiatives to strengthen the global franchise, including the completion of the acquisition of Hedging-Griffo as of November 1, 2007.

Income from continuing operations before taxes was CHF 1,377 million, up CHF 234 million, or 20%, compared to 4Q06. Net revenues were a record CHF 3,478 million, up CHF 505 million, or 17%. Net interest income increased, benefiting mainly from lower funding costs and higher liability volumes and margins, offset in part by decreasing asset margins, still faced with ongoing competitive pressure. Total non-interest income increased mainly as a result of higher commissions and fees, particularly from managed investment products (see “Managed investment products of Private Banking” on page 33) and performance-based fees. Provision for credit losses resulted in net releases of CHF 6 million, compared to net releases of CHF 41 million in 4Q06, which benefited from the resolution of a single case. Total operating expenses were CHF 2,107 million, up CHF 236 million, or 13%, compared to 4Q06. This increase was mainly dri ven by higher personnel and business costs associated with the international expansion of our Wealth Management business, higher commission expenses, non-credit-related provisions, higher marketing and sales activities and expenses related to the minority interests of a consolidated joint venture in our Corporate & Retail Banking business.

Assets under management as of the end of 4Q07 were CHF 995.4 billion, CHF 55.1 billion, or 5.9%, higher than 4Q06, mainly benefiting from the asset gathering during the year. Additionally, assets under management benefited from positive market performance over the last 12 months and the Hedging-Griffo acquisition, and were negatively impacted by foreign exchange-related movements and corporate cash now reported only in client assets. Net new assets were CHF 14.1 billion in 4Q07, up from CHF 9.7 billion in 4Q06, with Wealth Management contributing CHF 12.0 billion and Corporate & Retail Banking contributing CHF 2.1 billion.

Compared to 3Q07, income from continuing operations before taxes was up CHF 88 million, or 7%. Net revenues increased CHF 153 million, or 5%. Total non-interest income increased CHF 147 million, or 7%, mainly due to higher asset-based commissions and fees, including performance-based fees. Total operating expenses were up CHF 54 million, or 3%, mainly driven by business growth related to higher front and back office infrastructure costs, commission expenses, non-credit-related provisions, marketing and sales activities, partially offset by lower performance-related compensation due to an increase in deferred share-based compensation for 2007.

For 2007, income from continuing operations before taxes was a record CHF 5,486 million, up CHF 890 million, or 19%, compared to 2006. Net revenues were also a record CHF 13,522 million, up CHF 1,844 million, or 16%, compared to 2006, mainly driven by higher commission and fees, lower funding costs and higher liability volumes and margins, offset in part by decreasing asset margins. Operating expenses were CHF 8,095 million, up CHF 940 million, or 13%, mainly driven by business growth and related compensation and benefits, front and back office infrastructure costs and commission expenses.

Wealth Management

During 4Q07, we continued to profitably grow the business and strengthen our franchise in key markets. Despite the challenging operating environment, we achieved record net revenues and net new assets were CHF 12.0 billion. Income from continuing operations before taxes was CHF 976 million, up CHF 165 million, or 20%, from 4Q06. For 2007, income from continuing operations before taxes was also a record CHF 3,865 million.

Results
			in / end of			% change				in / end of		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Statements of income (CHF million)
Net revenues	2,476	2,344	2,077	6		19		9,583		8,181		17
Provision for credit losses	2	(1)	(17)	–		–		3		(19)		–
Compensation and benefits	778	812	714	(4)		9		3,177		2,780		14
General and administrative expenses	513	437	403	17		27		1,770		1,571		13
Commission expenses	207	196	166	6		25		768		612		25
Total other operating expenses	720	633	569	14		27		2,538		2,183		16
Total operating expenses	1,498	1,445	1,283	4	17		5,715		4,963		15
Income from continuing operations before taxes	976	900	811	8		20		3,865		3,237		19
Statement of income metrics (%)
Compensation/revenue ratio	31.4	34.6	34.4	–		–		33.2		34.0		–
Non-compensation/revenue ratio	29.1	27.0	27.4	–		–		26.5		26.7		–
Cost/income ratio	60.5	61.6	61.8	–		–		59.6		60.7		–
Pre-tax income margin	39.4	38.4	39.0	–		–		40.3		39.6		–
Utilized economic capital and return
Average utilized economic capital (CHF million)	1,724	1,664	1,486	4		16		1,592		1,709		(7)
Pre-tax return on average utilized economic capital (%)1	228.6	218.8	223.6	–		–		245.2		193.9		–
Balance sheet statistics (CHF million)
Total assets	268,871	261,277	229,731	3		17		268,871		229,731		17
Net loans	76,265	76,093	69,156	0		10		76,265		69,156		10
Goodwill	794	613	610	30		30		794		610		30
Number of employees (full-time equivalents)													< /sup>
Number of employees	14,300	13,900	13,400	3		7		14,300		13,400		7
Number of relationship managers
Number of relationship managers	3,140	3,010	2,820	4		11		3,140		2,820		11
1    Calculated using a return excluding interest costs for allocated goodwill.

Results (continued)
			in / end of		% change		in / end of	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Net revenue detail (CHF million)
Net interest income	643	637	488	1	32	2,446	1,916	28
Total non-interest income	1,833	1,707	1,589	7	15	7,137	6,265	14
Net revenues	2,476	2,344	2,077	6	19	9,583	8,181	17
Net revenue detail (CHF million)
Recurring	1,722	1,639	1,339	5	29	6,395	5,193	23
Transaction-based	754	705	738	7	2	3,188	2,988	7
Net revenues	2,476	2,344	2,077	6	19	9,583	8,181	17
Gross and net margin on assets under management (bp)
Recurring	81	78	70	–	–	77	71	–
Transaction-based	36	34	39	–	–	38	41	–
Gross margin	117	112	109	–	–	115	112	–
Net margin (pre-tax)	46	43	42	–	–	47	44	–

Operating environment

We continued to face a challenging operating environment in 4Q07 reflecting the turmoil in the credit markets. Volatility in the equity markets remained high due to the liquidity squeeze and economic growth concerns. The further weakening of the US dollar against the Swiss franc adversely impacted our results.

Overall, global growth proved resilient during 4Q07. Growth in the mature US and European economies slowed down, but growth in the emerging markets continued and helped to mitigate the economic deceleration.

We saw a modest level of client activity during the quarter. Investors sought to re-balance their portfolios by reducing their allocations to higher risk assets. Sales volumes of investment products were above 4Q06, with increases particularly in funds, but down compared to 3Q07, mainly due to a decrease in the demand for structured products.

Results summary

In 4Q07, income from continuing operations before taxes was CHF 976 million, up CHF 165 million, or 20%, compared to 4Q06. Net revenues were a record CHF 2,476 million, up CHF 399 million, or 19%, driven by an improvement in recurring revenues. Recurring revenues, which represented 70% of net revenues, increased CHF 383 million, or 29%, reflecting higher net interest income, mainly from lower funding costs and higher liability volumes and margins, as well as higher commissions and fees, particularly from managed investment products and performance-based fees. Transaction-based revenues increased CHF 16 million, or 2%. Total operating expenses were CHF 1,498 million, up CHF 215 million, or 17%. The increase in compensation and benefits of 9% was due to the ongoing strategic investment in the global franchise, partially offset by lower performance-related compensation due to an increase in deferred share-based compensation f or 2007. The growth in total other operating expenses of 27% was driven by higher infrastructure and business costs related to international expansion in our growth markets, commission expenses, non-credit-related provisions, as well as marketing and sales activities.

Net new assets were CHF 12.0 billion in 4Q07, with strong contributions from Asia and EMEA. Assets under management as of the end of 4Q07 were CHF 838.6 billion, up CHF 54.4 billion, or 6.9%, from the end of 4Q06, mainly benefiting from the asset gathering during the year. Additionally, assets under management benefited from positive market performance over the last 12 months and the Hedging-Griffo acquisition, and were negatively impacted by foreign exchange-related movements and corporate cash now reported only in client assets.

Compared to 3Q07, income from continuing operations before taxes was up CHF 76 million, or 8%. Net revenues increased 6%, due to both higher recurring and transaction-based revenues. Total operating expenses increased CHF 53 million, or 4%, mainly due to higher expenses related to the international expansion and non-credit-related provisions, partially offset by the lower performance-related compensation.

For 2007, income from continuing operations before taxes was a record CHF 3,865 million, up CHF 628 million, or 19%, compared to 2006. Net revenues were also a record CHF 9,583 million, up CHF 1,402 million, or 17%, compared to 2006, mainly reflecting strong growth in recurring revenues. Total operating expenses increased CHF 752 million, or 15%, mainly due to higher compensation and benefits and business expenses related to the international expansion.

< td width="3" height="16">

Assets under management
				in / end of			% change				in / end of		% change
	4Q07	3Q07		4Q06	QoQ		YoY		2007		2006		YoY
Assets under management (CHF billion)														< /font>
Assets under management	838.6	834.7		784.2	0.0	6.9		838.6		784.2		6.9
of which discretionary assets	182.7	189.6		177.6	(3.6)		2.9		182.7		177.6		2.9
of which advisory assets	655.9	645.1		606.6	1.7		8.1		655.9		606.6		8.1
Growth in assets under management (CHF billion)
Net new assets	12.0	9.7		8.6	–		–		50.2		50.5		–
Acquisitions and divestitures	14.1	0.0		0.0	–		–		14.1		0.0		–
Market movements and investment performance	(4.5)	2.2		28.0	–		–		38.1		51.1		–
Currency	(15.5)	(16.1)		(5.2)	–		–		(23.1)		(9.5)		–
Other	(2.2)	(21.6)	1	(0.4)	–		–		(24.9)	1	(1.2)		–
Total other effects	(8.1)	(35.5)		22.4	–		–		4.2		40.4		–
Growth in assets under management	3.9	(25.8)		31.0	–< /font>		–		54.4		90.9		–
Growth in assets under management (%)														< /font>
Net new assets	5.7	4.5		4.6	–		–		6.4		7.3		–
Total other effects	(3.9)	(16.5)	1	11.9	–		–		0.5	1	5.8		–
Growth in assets under management	1.8	(12.0)		16.5	–< /font>		–		6.9		13.1		–
Growth in assets under management (rolling four-quarter average) (%)
Net new assets	6.4	6.2		7.3	–		–		–		–		–
Total other effects	0.5	4.6	1	5.8	–		–		–		–		–
Growth in assets under management (rolling four-quarter average)	6.9	10.8		13.1	–		–		–		–		–
1    The reduction in assets under management also reflects CHF 21.6 billion of corporate cash now reported only in client assets.

Performance indicators

Pre-tax income margin (KPI)

Our mid-term target is a pre-tax income margin above 40.0%. In 4Q07, the pre-tax income margin was 39.4%, up 0.4 percentage points from 4Q06 and up 1.0 percentage point from 3Q07. The 2007 pre-tax income margin was 40.3%, compared to 39.6% for 2006.

Net new asset growth rate (KPI)

Our mid-term target is a growth rate over 6.0%. We achieved a rolling four-quarter average growth rate of 6.4% and an annualized growth rate of 5.7% in 4Q07.

Gross margin

Our gross margin was 117 basis points, up 8 basis points, compared to 4Q06. The recurring margin increased 11 basis points. This increase was mainly due to higher net interest income, primarily from lower funding costs and higher commissions and fees. The transaction-based margin decreased three basis points, reflecting moderate client activity. Compared to 3Q07, the gross margin was up five basis points due to higher recurring revenues, mainly from performance-based fees, and higher transaction-based revenues in the US compared to a weak 3Q07. The 2007 gross margin was 115 basis points, compared to 112 basis points in 2006.

Initiatives and achievements

We executed several key growth initiatives to strengthen our global franchise:

– As part of our European growth initiative, we launched our onshore activities in Vienna and Salzburg, Austria. We will focus on high-net-worth individuals and families and expand our relationships with family-owned businesses. Vienna also serves as a gateway to the markets of Central and Eastern Europe.

– We were granted an investment marketing license for Israel and opened an office in Tel Aviv. We are one of the first banks to provide comprehensive financial services to clients in Israel based on the combined resources of the integrated bank.

– We continued to grow our onshore footprint in the fast-growing Asia Pacific region by expanding our newly established onshore franchise in Australia, as well as commencing onshore private banking operations in Shanghai.

– Reflecting our strategy in the US of delivering integrated wealth management solutions, we consolidated our family wealth management business and our tax, trust and estate planning specialists to provide a comprehensive service offering. In addition, we announced the opening of an office in Houston, further leveraging our significant investment banking presence. Houston is the fourth-largest city in the US and home to an increasing number of high-net-worth and ultra-high-net-worth individuals. We now operate 14 offices across the US.

– We are highly committed to the Indian market and to investing in the wealth management business locally. In 4Q07, we appointed the head of Wealth Management in India, who will be responsible for building our onshore capabilities. This is in addition to the teams we have already built in Dubai, London, Singapore and Zurich to cater to the needs of non-resident Indian clients. In January 2008, Credit Suisse was granted a Portfolio Management Scheme License by the Securities and Exchange Board of India.

Results detail

The following provides a comparison of our 4Q07 results versus 4Q06 (YoY) and versus 3Q07 (QoQ).

Net revenues

Recurring

Recurring revenues arise from recurring net interest income, commissions and fees, including performance-based fees, related to assets under management and assets under custody, as well as fees for general banking products and services.

YoY: Up 29% from CHF 1,339 million to CHF 1,722 million

The increase was driven by higher net interest income, mainly from lower funding costs and higher liability volumes and margins, as well as higher commissions and fees, mainly from managed investment products and performance-based fees from Hedging-Griffo.

QoQ: Up 5% from CHF 1,639 million to CHF 1,722 million

The increase was due mainly to the performance-based fees.

Transaction-based

Transaction-based revenues arise primarily from brokerage fees, product-issuing fees, client foreign exchange income and other transaction-based income.

YoY: Up 2% from CHF 738 million to CHF 754 million

The increase was mainly driven by higher client foreign exchange income and gains on real estate, partially offset by lower product-issuing fees.

QoQ: Up 7% from CHF 705 million to CHF 754 million

The increase was mainly driven by higher revenues in the US due to a weak 3Q07, higher brokerage fees and gains on real estate, partially offset by lower product-issuing fees affected by the adverse market conditions.

Provision for credit losses

YoY: From CHF (17) million to CHF 2 million

Provision for credit losses reflected a low level of net provisions. 4Q06 included releases from the resolution of a single exposure.

QoQ: From CHF (1) million to CHF 2 million

Provision for credit losses was stable.

Operating expenses

Compensation and benefits

YoY: Up 9% from CHF 714 million to CHF 778 million

The increase mainly reflected growth in headcount, particularly strategic hiring made in the front office, as well as higher salaries and related benefits, partially offset by lower performance-related compensation due to an increase in deferred share-based compensation for 2007.

QoQ: Down 4% from CHF 812 million to CHF 778 million

The decrease was mainly due to the lower performance-related compensation.

General and administrative expenses

YoY: Up 27% from CHF 403 million to CHF 513 million

The increase mainly reflected higher front and back office infrastructure costs due to the international expansion, non-credit-related provisions as well as marketing and sales activities.

QoQ: Up 17% from CHF 437 million to CHF 513 million

The increase mainly reflected higher front and back office infrastructure costs due to the international expansion, non-credit-related provisions as well as marketing and sales activities.

Commission expenses

YoY: Up 25% from CHF 166 million to CHF 207 million

The increase was primarily associated with higher business volumes.

QoQ: Up 6% from CHF 196 million to CHF 207 million

Commission expenses increased due to higher business volumes.

Personnel

During 4Q07, we strengthened our teams mainly in Asia, Latin America, Europe and the Middle East. As of the end of 4Q07, we had 3,140 relationship managers, an increase of 320 from the end of 4Q06, mainly in Asia and Europe. From the end of 3Q07, relationship managers increased by 130, primarily in the Americas (of which 30 were from Hedging-Griffo), Asia and Europe.

Managed investment products of Private Banking

The objective of Private Banking is to provide comprehensive professional investment advice to preserve and grow our clients' wealth as well as to implement the resulting solutions. In today's environment, where the range of investment products expands every day, the products themselves have become more complex and the time to react to changing markets has shrunk. As clients have less time to manage their financial investments, managed investment products have become an important feature of our clients’ portfolio.

Generally, managed investment products are investment products that are actively managed and structured by specialists. Specifically, they comprise discretionary mandates, funds and structured products. Managed investment products provide a number of advantages for our clients. Managed investment products are an efficient way to diversify the risks in a client's portfolio and they offer access to asset classes such as private equity or specialist hedge funds that otherwise would not be available to private investors.

Private Banking has initiated a program to:

– emphasize the importance of managed investment products as a core element of a comprehensive wealth management solution for clients;

– improve the support for relationship managers to offer managed investment products in Private Banking's structured advisory process; and

– extend the range of innovative managed investment products for all market environments, e.g., total return products.

The managed investment products initiative draws on the expertise of Investment Banking, Asset Management and Private Banking. A bank-wide integrated platform was introduced to exchange product knowledge across all divisions in order to foster product innovation and guide in the investment product selection.

Credit Suisse is positioned as one of the world’s leading private banks for managed investment products mandates, with more than 2,000 dedicated investment management professionals working closely together, offering both comprehensive proprietary products and worldwide access to best-in-class investment solutions, such as hedge funds from external partners on our platform.

The managed investment products initiative has seen encouraging results in its first year. In the demanding market conditions such as those we have experienced in the second half of 2007, managed investment products have offered an excellent balance between risk and return. Managed investment products had strong sales in 2007, with our total return campaign being just one example of this success. We continue to optimize the offering of managed investment products by taking advantage of market developments in areas such as alternative investments.

Corporate & Retail Banking

The robust economic environment in Switzerland during 4Q07 provided a stable environment to further grow our business. We achieved record net revenues and reported income from continuing operations before taxes of CHF 401 million, up CHF 69 million, or 21%, compared to 4Q06. For 2007, income from continuing operations before taxes was a record CHF 1,621 million.

Results
			in / end of			% change		in / end of	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Statements of income (CHF million)
Net revenues	1,002	981	896	2		12	3,939	3,497	13
Provision for credit losses	(8)	(16)	(24)	(50)		(67)	(62)	(54)	15
Compensation and benefits	320	340	323	(6)		(1)	1,352	1,258	7
General and administrative expenses	255	236	233	8		9	900	811	11
Commission expenses	34	32	32	6	< /td>	6	128	123	4
Total other operating expenses	289	268	265	8		9	1,028	934	10
Total operating expenses	609	608	588	0		4	2,380	2,192	9
Income from continuing operations before taxes	401	389	332	3		21	1,621	1,359	19
Statement of income metrics (%)
Compensation/revenue ratio	31.9	34.7	36.0	–		–	34.3	36.0	–
Non-compensation/revenue ratio	28.8	27.3	29.6	–		–	26.1	26.7	–
Cost/income ratio	60.8	62.0	65.6	–		–	60.4	62.7	–
Pre-tax income margin	40.0	39.7	37.1	–		–	41.2	38.9	–
Utilized economic capital and return
Average utilized economic capital (CHF million)	3,061	3,030	3,379	1		(9)	3,076	3,463	(11)
Pre-tax return on average utilized economic capital (%)1	52.5	51.3	39.4	–		–	52.8	39.4	–
Balance sheet statistics (CHF million)
Total assets	107,929	109,447	111,010	(1)		(3)	107,929	111,010	(3)
Net loans	99,241	97,256	94,514	2		5	99,241	94,514	5
Goodwill	181	181	181	0		0	181	181	0
Number of employees (full-time equivalents)										< /sup>
Number of employees	8,900	8,900	8,800	0		1	8,900	8,800	1
1    Calculated using a return excluding interest costs for allocated goodwill.

Results (continued)
			in / end of		% change		in / end of	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Net revenue detail (CHF million)
Net interest income	587	587	582	0	1	2,342	2,179	7
Total non-interest income	415	394	314	5	32	1,597	1,318	21
Net revenues	1,002	981	896	2	12	3,939	3,497	13
Number of branches
Number of branches	216	216	215	0	0	216	215	0

Operating environment

Swiss economic fundamentals remained robust during 4Q07. The further decrease in the unemployment rate and overall positive economic prospects positively affected consumer confidence. Some concerns over inflation increased, but the Swiss National Bank held interest rates steady and provided liquidity. Compared to 4Q06, volumes of interest-related asset and liability products grew, reflecting the positive operating environment and consumer sentiment. Liability margins increased, but we faced continued asset margin pressure from strong market competition and a move by clients from fixed to variable interest rate products.

Results summary

In 4Q07, income from continuing operations before taxes was CHF 401 million, up CHF 69 million, or 21%, compared to 4Q06. Net revenues were a record CHF 1,002 million, up CHF 106 million, or 12%. Net interest income was stable as higher liability volumes and margins were offset by decreasing asset margins. Total non-interest income was significantly higher, mainly due to an increase in commissions and fees related to minority interests of a consolidated joint venture. Net releases of provision for credit losses were CHF 8 million, compared to net releases of CHF 24 million in 4Q06. Total operating expenses were CHF 609 million, up CHF 21 million, or 4%, mainly due to higher expenses related to the minority interests of a consolidated joint venture. Net new assets were CHF 2.1 billion, mainly benefiting from inflows in the institutional pension fund business.

Compared to 3Q07, income from continuing operations before taxes increased CHF 12 million, or 3%. Higher net revenues were driven by total non-interest income, mainly from commissions and fees, while net interest income was flat. Total operating expenses were flat, as lower performance-related compensation offset higher marketing and front and back office infrastructure costs.

For 2007, income from continuing operations before taxes was a record CHF 1,621 million, up CHF 262 million, or 19%, compared to 2006. Net revenues were also a record CHF 3,939 million, up CHF 442 million, or 13%, compared to 2006. Total operating expenses increased CHF 188 million, or 9%.

Overall, business remained solid, reflecting the strong economy and the favorable credit environment in Switzerland.

Performance indicators

Pre-tax income margin (KPI)

Our mid-term goal is a pre-tax income margin above 40%. In 4Q07, our pre-tax income margin was 40.0%, compared to 37.1% in 4Q06 and 39.7% in 3Q07. The 2007 pre-tax income margin was 41.2%, compared to 38.9% in 2006.

Cost/income ratio

In 4Q07, the cost/income ratio was 60.8%, compared to 65.6% in 4Q06 and 62.0% in 3Q07. The 2007 cost/income ratio was 60.4%, compared to 62.7% in 2006.

Pre-tax return on average utilized economic capital

In 4Q07, the pre-tax return on average utilized economic capital was 52.5%, compared to 39.4% in 4Q06 and 51.3% in 3Q07. The 2007 pre-tax return on average utilized economic capital was 52.8%, compared to 39.4% in 2006.

Initiatives and achievements

A new pension solution was launched in November 2007 called “CSA Swiss Index Protected”. This new structured product for personal pensions is specifically designed to meet the needs of security-conscious investors. It combines capital protection and a minimum income with the potential returns offered by participation in the Swiss Market Index.

We are the first Swiss bank to offer charge-free Single Euro Payments Area (SEPA) execution for corporate clients. SEPA introduces new procedures and standards for the processing of cross-border and domestic euro payments to reduce transaction costs. The next phase will center on formulating a set of cross-border rules for a Europe-wide debit procedure and standardization of card systems in the SEPA zone.

Several branch renovations were completed in Bern, Basel, Châtel-St-Denis, Ascona, St. Moritz and Fribourg during 4Q07 to transition these locations into specialized advice centers with state-of-the-art equipment for modern demands.

We renewed our contract as the main sponsor of the Swiss Football Association and all Swiss national football teams extending our 14-year history through 2012. We remain committed to the national and youth teams. A large marketing campaign to promote and celebrate Switzerland’s hosting of the 2008 European Championship has been initiated.

Results detail

The following provides a comparison of our 4Q07 results versus 4Q06 (YoY) and versus 3Q07 (QoQ).

Net revenues

Net interest income

YoY: Up 1% from CHF 582 million to CHF 587 million

Higher liability volumes and margins were offset by lower asset margins, impacted by the ongoing competitive pressure.

QoQ: Flat at CHF 587 million

Net interest income was stable.

Total non-interest income

YoY: Up 32% from CHF 314 million to CHF 415 million

The increase was mainly due to higher asset-based commissions and fees, primarily related to minority interests of a consolidated joint venture, and trading revenues.

QoQ:Up 5% from CHF 394 million to CHF 415 million

The increase was primarily due to higher commissions and fees.

Provision for credit losses

YoY: Down 67% from CHF (24) million to CHF (8) million

We reported net releases supported by the continued favorable credit environment.

QoQ: Down 50% from CHF (16) million to CHF (8) million

With the continued favorable credit environment, we had net releases.

Operating expenses

Compensation and benefits

YoY: Down 1% from CHF 323 million to CHF 320 million

The decrease was driven by lower performance-related compensation due to an increase in deferred share-based compensation for 2007. This decrease was mostly offset by higher personnel expenses due to increased headcount and higher salaries and benefits.

QoQ: Down 6% from CHF 340 million to CHF 320 million

The decrease was due to the lower performance-related compensation.

General and administrative expenses

YoY: Up 9% from CHF 233 million to CHF 255 million

Higher costs were mainly due to increased expenses related to minority interests of a consolidated joint venture. Excluding this, general and administrative expenses were slightly down, reflecting our continued focus on cost management.

QoQ: Up 8% from CHF 236 million to CHF 255 million

Higher costs were mainly driven by higher marketing and front and back office infrastructure costs.

Commission expenses

YoY: Up 6% from CHF 32 million to CHF 34 million

The increase was mainly related to higher business volumes.

QoQ: Up 6% from CHF 32 million to CHF 34 million

The increase was mainly related to higher business volumes.

Asset Management

Our 4Q07 results were impacted by the ongoing challenges in short-term fixed income markets. Income from continuing operations before taxes was a loss of CHF 247 million, which included valuation reductions of CHF 774 million from securities purchased from our money market funds. Before these valuation reductions, income from continuing operations before taxes was a strong CHF 527 million in 4Q07. Assets under management decreased to CHF 691.3 billion, mainly due to outflows in money market assets.

Results
			in / end of		% change		in / end of	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Statements of income (CHF million)
Net revenues1	354	594	738	(40)	(52)	2,577	2,861	(10)
Provision for credit losses	(1)	0	1	–	–	(1)	1	–
Compensation and benefits2	308	287	327	7	(6)	1,205	1,129	7
General and administrative expenses3	185	167	211	11	(12)	609	853	(29)
Commission expenses	109	95	110	15	(1)	410	370	11
Total other operating expenses	294	262	321	12	(8)	1,019	1,223	(17)
Total operating expenses	602	549	648	10	(7)	2,224	2,352	(5)
Income from continuing operations before taxes	(247)	45	89	–	–	354	508	(30)
Statement of income metrics (%)
Compensation/revenue ratio	87.0	48.3	44.3	–	–	46.8	39.5	–
Non-compensation/revenue ratio	83.1	44.1	43.5	–	–	39.5	42.7	–
Cost/income ratio	170.1	92.4	87.8	–	–	86.3	82.2	–
Pre-tax income margin	(69.8)	7.6	12.1	–	–	13.7	17.8	–
Utilized economic capital and return
Average utilized economic capital (CHF million)	1,932	1,689	1,539	14	26	1,677	1,479	13
Pre-tax return on average utilized economic capital (%)4	(48.6)	13.9	30.2	–	–	24.3	41.8	–
Balance sheet statistics (CHF million)
Total assets	27,784	32,457	20,448	(14)	36	27,784	20,448	36
Goodwill	2,442	2,332	2,423	5	1	2,442	2,423	1
Number of employees (full-time equivalents)									< /sup>
Number of employees	3,600	3,400	3,400	6	6	3,600	3,400	6
1    Includes valuation reductions of CHF 774 million, CHF 146 million and CHF 920 million in 4Q07, 3Q07 and 2007, respectively, from securities purchased from our money market funds.      2    Includes CHF 20 million and CHF 53 million in 4Q06 and 2006, respectively, of severance costs relating to the realignment.      3    Includes CHF 13 million and CHF 140 million in 4Q06 and 2006, respectively, of intangible asset impairments and CHF 32 million in 2006 of professional fees relating to the realignment.      4    Calculated using a return excluding interest costs for allocated goodwill.

Results (continued)
			in / end of				% change		in / end of	% change
	4Q07	3Q07	4Q06		QoQ		YoY	2007	2006	YoY
Net revenue detail (CHF million)
Fixed income and money market	79	103	75		(23)		5	373	321	16
Equity	106	85	105		25		1	408	430	(5)
Balanced	210	186	181		13		16	771	674	14
Private equity1	101	91	80		11		26	312	236	32
Diversified strategies2	119	89	76		34		57	380	273	39
Fund and alternative solutions3	99	87	92		14	< /sup>	8	353	341	4
Alternative investments	319	267	248		19		29	1,045	850	23
Other	109	40	37		173		195	219	84	161
Net revenues before private equity and other investment-related gains and securities purchased from our money market funds	823	681	646	< /td>	21		27	2,816	2,359	19
Private equity and other investment-related gains	305	59	92		417		232	681	502	36
Net revenues before securities purchased from our money market funds	1,128	740	738		52		53	3,497	2,861	22
Securities purchased from our money market funds	(774)	(146)	0		430		–	(920)	0	–
Net revenues	354	594	738		(40)		(52)	2,577	2,861	(10)
Gross and net margin on assets under management (bp)
Gross margin before private equity and other investment-related gains and securities purchased from our money market funds	47	37	39		–		–	39	37	& ndash;
Gross margin on private equity and other investment-related gains	17	3	5		–		–	10	8	–
Gross margin before securities purchased from our money market funds	64	40	44		–		–	49	45	–
Gross margin on securities purchased from our money market funds	(44)	(8)	0		–		–	(13)	0	–
Gross margin	20	32	44		–		–	36	45	–
Net margin (pre-tax)	(14)	2	5		–		–	5	8	–
1    Includes private equity fees and commissions and alternative investment joint ventures.      2    Includes real estate, leveraged investments and Volaris.      3    Includes fund of hedge funds and quantitative strategies.

Operating environment

The operating environment for the asset management industry was one of extreme divergence between market opportunities and potential risk. Opportunities were primarily seen in emerging markets and alternative investments, while mortgage sectors remained challenging. Hedge fund performance was generally positive despite the turmoil in credit markets.

Financial markets during 4Q07 were dominated by further announcements of write-downs by financial institutions with exposures to the US subprime market. Credit spreads that widened during 3Q07 remained at relatively elevated levels, while liquidity continued to be poor. Short-term fixed income markets in particular remained challenging, resulting in significant valuation reductions from securities purchased from our money market funds.

Results summary

In 4Q07, income from continuing operations before taxes was a loss of CHF 247 million, down CHF 336 million compared to 4Q06, mainly due to valuation reductions of CHF 774 million from securities purchased from our money market funds, partially offset by private equity and other investment-related gains of CHF 305 million. Our results were also positively impacted by the completion of the acquisition of Hedging-Griffo as of November 1, 2007.

Net revenues were CHF 354 million, down CHF 384 million, or 52%, compared to 4Q06. Net revenues before securities purchased from our money market funds were CHF 1,128 million, an increase of CHF 390 million, or 53%, compared to 4Q06 (refer to the table “Results before securities purchased from our money market funds”). Asset management and administrative fees were strong, reflecting growth in assets under management during 2007, particularly in alternative investments and balanced assets. Performance-based fees increased significantly. Private equity commission income was solid, reflecting the strength of our private equity franchise. Private equity and other investment-related gains were CHF 305 million, up CHF 213 million, or 232%, primarily due to fair value gains on our investments. Total operating expenses were CHF 602 million, a decrease of CHF 46 million, or 7%, compared to 4Q06.

Compared to 3Q07, income from continuing operations before taxes was down CHF 292 million and net revenues were down CHF 240 million, or 40%. Total operating expenses were up CHF 53 million, or 10%.

Assets under management were CHF 691.3 billion as of the end of 4Q07, up from CHF 669.9 billion as of the end of 4Q06, reflecting CHF 16.6 billion in assets under management from Hedging-Griffo, market movements of CHF 14.9 billion and net new assets of CHF 3.6 billion, partially offset by negative foreign exchange-related movements of CHF 12.2 billion. Net new assets included inflows of CHF 25.4 billion in alternative investments, CHF 6.7 billion in balanced assets and CHF 4.7 billion in fixed income, offset in part by outflows of CHF 28.4 billion in money market assets and CHF 5.1 billion in equities.

For 4Q07, we had net new asset outflows of CHF 24.9 billion, which included CHF 27.9 billion in money market assets, CHF 3.3 billion in balanced assets and CHF 3.1 billion in equities and fixed income, offset in part by inflows of CHF 9.7 billion in alternative investments.

For 2007, income from continuing operations before taxes was CHF 354 million, down CHF 154 million, or 30%, compared to 2006. 2007 included valuation reductions of CHF 920 million from securities purchased from our money market funds and 2006 included realignment costs of CHF 225 million. Before these items, income from continuing operations before taxes increased CHF 541 million.

Results before securities purchased from our money market funds
			in / end of		% change		in / end of	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Statements of income (CHF million)
Net revenues	1,128	740	738	52	53	3,497	2,861	22
Provision for credit losses	(1)	0	1	–	–	(1)	1	–
Compensation and benefits	308	287	327	7	(6)	1,205	1,129	7
Total other operating expenses	294	262	321	12	(8)	1,019	1,223	(17)
Total operating expenses	602	549	648	10	(7)	2,224	2,352	(5)
Income from continuing operations before taxes	527	191	89	176	492	1,274	508	151	< sup>
Statement of income metrics (%)
Compensation/revenue ratio	27.3	38.8	44.3	–	–	34.5	39.5	–
Non-compensation/revenue ratio	26.1	35.4	43.5	–	–	29.1	42.7	–
Cost/income ratio	53.4	74.2	87.8	–	–	63.6	82.2	–
Pre-tax income margin	46.7	25.8	12.1	–	–	36.4	17.8	–
Gross and net margin on assets under management (bp)
Gross margin	64	40	44	–	–	49	45	–
Net margin (pre-tax)	30	10	5	–	–	18	8	–

Securities purchased from our money market funds
	Purchased in 3Q07	Gains/ (losses) in 3Q07	Purchased in 4Q07	Gains/ (losses) in 4Q07	Sold	Matured/ restruc- tured		Fair value end of 4Q07
Commercial paper, bonds and other securities issued by (CHF million)
Structured investment vehicles	5,233	(82)	57	(379)	(104)	(2,244)		2,481
Asset-backed securities vehicles	473	(30)	558	(295)	(584)	904	1	1,026
Corporates	2,533	(34)	432	(100)	(213)	(2,204)		414
Total	8,239	(146)	1,047	(774)	(901)	(3,544)		3,921
1    Includes securities of CHF 1,001 million, at amortized cost, received in lieu of payment from a restructured asset-backed vehicle. The fair value of these securities as of the end of 4Q07 was CHF 576 million.

Revenue details on securities purchased from our money market funds
			in / end of			% change		in / end of	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Revenue details (CHF million)
Realized gains/(losses)	(101)	(12)	0	–		–	(113)	0	–
Unrealized gains/(losses)	(673)	(134)	0	402	< /sup>	–	(807)	0	–
Securities purchased from our money market funds	(774)	(146)	0	430		–	(920)	0	–

Securities purchased from our money market funds

In 3Q07 and 4Q07, we repositioned our money market funds by purchasing securities from these funds with the intent to eliminate structured investment vehicle (SIV), asset-backed CDO and US subprime exposure. As of the end of 4Q07, there were no US subprime positions and no material SIV or CDO positions in our money market funds. The securities transactions were executed in order to address liquidity concerns caused by the US market’s extreme conditions. The securities were purchased at the amortized cost from the funds as mandated by regulation. Valuation reductions on these securities were CHF 774 million in 4Q07 and CHF 146 million in 3Q07. As of the end of 4Q07, the fair value of our balance sheet exposure from these securities was CHF 3.9 billion, compared to CHF 8.2 billion purchased in 3Q07. The majority of this exposure is mortgage-backed and CHF 419 million is US subprime-related.

Of the CHF 3.9 billion balance sheet exposure, CHF 2.5 billion are securities issued by SIVs, of which the two largest positions totaled CHF 1.7 billion, with corresponding aggregate unrealized losses of CHF 435 million. Of the remaining CHF 798 million issued by SIVs, we had corresponding aggregate unrealized losses of CHF 26 million.

We hold asset-backed securities totaling CHF 1.0 billion, of which CHF 576 million were received in lieu of payment on a restructured asset-backed vehicle, with a corresponding unrealized loss of CHF 138 million. Of the remaining CHF 450 million, the largest position totaled CHF 228 million, with corresponding unrealized losses of CHF 96 million. Of the CHF 222 million issued by other vehicles, we had corresponding aggregate unrealized losses of CHF 91 million.

Of the CHF 414 million of corporate securities, most are floating-rate notes, with corresponding unrealized and realized losses of CHF 134 million.

Performance indicators

Pre-tax income margin (KPI)

Our mid-term target is a pre-tax income margin above 35%. In 4Q07, the pre-tax margin was (69.8)%, compared to 12.1% in 4Q06 and 7.6% in 3Q07. The pre-tax margin before securities purchased from our money market funds was 46.7%, compared to 12.1% in 4Q06 and 25.8% in 3Q07. The 2007 pre-tax income margin was 13.7%, compared to 17.8% for 2006. The 2007 pre-tax income margin before securities purchased from our money market funds was 36.4%, compared to 17.8% for 2006.

Net new asset growth rate

In 4Q07, the rolling four-quarter average growth rate decreased to 0.5%, compared to 8.6% in 4Q06 and 3.9% in 3Q07. The annualized growth rate decreased to (13.9)%, from (1.8)% in 4Q06 and (11.2)% in 3Q07.

Gross margin

The gross margin on assets under management was 20 basis points in 4Q07, compared to 44 basis points in 4Q06. The gross margin on assets under management before private equity and other investment-related gains and securities purchased from our money market funds was 47 basis points in 4Q07, compared to 39 basis points in 4Q06.

The 2007 gross margin on assets under management was 36 basis points compared to 45 basis points in 2006. The 2007 gross margin on assets under management before private equity and other investment-related gains and securities purchased from our money market funds was 39 basis points, compared to 37 basis points in 2006.

253.5

Assets under management
			in / end of			% change				in / end of		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Assets under management (CHF billion)													< /font>
Fixed income and money market	178.7	210.9	208.3	(15.3)		(14.2)		178.7		208.3		(14.2)
Equity	38.1	43.8	47.0	(13.0)		(18.9)		38.1		47.0		(18.9)
Balanced	284.0	289.2	270.2	(1.8)		5.1		284.0		270.2		5.1
Private equity1	34.8	33.9	30.2	2.7		15.2		34.8		30.2		15.2
Diversified strategies2	66.2	62.7	46.4	5.6		42.7		66.2		46.4		42.7
Fund and alternative solutions3	64.4	64.5	60.7	0.0		6.1		64.4		60.7		6.1
Alternative investments	165.4	161.1	137.3	2.7		20.5		165.4		137.3		20.5
Other	25.1	9.1	7.1	175.8			25.1		7.1		253.5
Assets under management	691.3	714.1	669.9	(3.2)		3.2		691.3		669.9		3.2
of which discretionary assets	593.3	610.9	573.7	(2.9)		3.4		593.3		573.7		3.4
of which advisory assets	98.0	103.2	96.2	(5.0)		1.9		98.0		96.2		1.9
Growth in assets under management (CHF billion)
Net new assets	(24.9)	(20.9)	(2.9)	–		–		3.6		50.8		–
Acquisitions and divestitures	16.6	0.0	0.6	–		–		16.6		6.4		–
Market movements and investment performance	(2.3)	(7.0)	14.9	–		–		14.9		30.6		–
Currency	(12.5)	(6.7)	(2.3)	–		–		(12.2)		(7.2)		–
Other	0.3	(0.9)	0.0	–		–		(1.5)	4	(0.1)		–
Total other effects	2.1	(14.6)	13.2	–	< /sup>	–		17.8		29.7		–
Growth in assets under management	(22.8)	(35.5)	10.3	&ndas h;		–		21.4		80.5		–
Growth in assets under management (%)													< /font>
Net new assets	(13.9)	(11.2)	(1.8)	–		–		0.5		8.6		–
Total other effects	1.2	(7.8)	8.0	–		–		2.7	4	5.0		–
Growth in assets under management	(12.7)	(19.0)	6.2	&ndash ;		–		3.2		13.6		–
Growth in assets under management (rolling four-quarter average) (%)
Net new assets	0.5	3.9	8.6	–		–		–		–		–
Total other effects	2.7	4.4	5.0	–		–		–		–		–
Growth in assets under management (rolling four-quarter average)	3.2	8.3	13.6	–		–		–		–		–
Private equity investments (CHF billion)
Private equity investments	3.3	3.0	2.5	10.0	< /sup>	32.0		3.3		2.5		32.0
The classification of assets is based upon the classification of the fund manager.
1    Includes alternative investment joint ventures.      2    Includes real estate, leveraged investments and Volaris.      3    Includes fund of hedge funds and quantitative strategies.      4    Includes outflows as a result of the sale of the insurance business.

Initiatives and achievements

In 4Q07, we were awarded diverse mandates and realized opportunities for growth and diversification.

– In the US, we were awarded high-yield mandates of USD 1.0 billion, with a commitment for a further USD 800 million.

– Our private equity joint venture in China made investments including: a 20% equity stake in Freet Petroleum Equipment, a company that manufactures a full range of oil pipelines and drilling equipment; a 7.4% equity stake in Yanhuang Health Media, which operates the largest flat panel advertisement distribution platform for hospitals in China; and a 28.5% equity stake in China Virtual Telecom Holdings, a leading value-added telecommunications service provider in China.

– Global Infrastructure Partners (GIP) acquired, through a joint venture with Zeus Infra-Management (in which GIP holds an 80% equity stake), a 74% stake in East India Petroleum Ltd., India’s fourth-largest privately-owned provider of liquid storage services for petroleum, oil and lubricant products, petrochemicals, liquefied petroleum gas and biodiesel.

– Our international real estate fund acquired 50% of the Latitude East building in Sydney’s central business district, its first investment in Australia and sixth in Asia.

– We also launched a 120/20 global natural resources fund for a top-tier US insurance company, offered as part of their variable life and annuity programs, reflecting our client solutions-oriented approach. Our Future Generation Mandate and Future Generation Certificate balanced products, launched a year ago in Switzerland, have raised in excess of CHF 2.0 billion.

– Since April 2007, our emerging markets bond funds have reached USD 1.2 billion in assets under management.

Results detail

The following provides a comparison of our 4Q07 results versus 4Q06 (YoY) and versus 3Q07 (QoQ).

Net revenues

Net revenues before private equity and other investment-related gains and securities purchased from our money market funds include asset management fees, performance-based fees and fees from fund administration services provided to clients. Private equity and other investment-related gains include realized and unrealized gains and losses on investments and performance-related carried interest.

Fixed income and money market, equity, balanced and other

YoY: Up 27% from CHF 398 million to CHF 504 million

The increase was mainly due to higher other revenues from year-end performance-based fees of CHF 70 million from Hedging-Griffo, as well as increased revenues from our balanced funds. The increase in balanced revenues was primarily due to higher asset management and administrative fees in multi-asset class solutions.

QoQ: Up 22% from CHF 414 million to CHF 504 million

The increase was mainly due to the performance-based fees from Hedging-Griffo, as well as increased revenues from our balanced and equity funds. The increase in balanced revenues was primarily due to higher asset management and administrative fees in multi-asset class solutions. Equity revenues increased, reflecting higher asset management fees. These results were partially offset by a reduction in fixed income and money market revenues due to outflows of money market assets reflecting the challenging market environment.

Alternative investments

YoY: Up 29% from CHF 248 million to CHF 319 million

The increase was primarily from diversified strategies and private equity revenues. Diversified strategies revenues reflected increased management fees on our real estate investment portfolios. Private equity revenues increased, with solid commissions and fees reflecting the strength of our private equity franchise and higher revenues from our alternative investment joint ventures. Fund and alternative solutions revenues increased due to higher revenues in quantitative and single-manager strategies, partially offset by lower revenues from our risk monitoring services.

QoQ:Up 19% from CHF 267 million to CHF 319 million

The increase was primarily from diversified strategies revenues from the real estate business in Switzerland following weak results in 3Q07. Fund and alternative solutions revenues increased due to higher revenues in alpha strategies. Private equity revenues increased primarily from higher revenues from our alternative investment joint ventures.

Private equity and other investment-related gains

YoY: Up 232% from CHF 92 million to CHF 305 million

4Q07 had strong private equity and other investment-related gains, led by gains on Nycomed (a European pharmaceutical company), Specialized Technology Resources (a consulting company to major manufacturers) and our recently completed IPO of E-House (a Chinese property management company).

QoQ:Up 417% from CHF 59 million to CHF 305 million

The increase also reflected a weak 3Q07 due to the market dislocation in the US.

Operating expenses

Compensation and benefits

YoY:Down 6% from CHF 327 million to CHF 308 million

The decrease was primarily due to lower social security benefit costs, an increase in deferred share-based compensation for 2007 and CHF 20 million of severance costs related to our realignment in 4Q06. These decreases were partially offset by an increase in performance-related compensation due to the higher revenues in the alternative investments business.

QoQ: Up 7% from CHF 287 million to CHF 308 million

The increase was due to higher performance-related compensation as a result of higher net revenues in the alternative investments business, partially offset by a decline in employee benefits and an increase in the deferred share-based compensation for 2007.

General and administrative expenses

YoY: Down 12% from CHF 211 million to CHF 185 million

The decrease was mainly due to a CHF 22 million provision relating to a non-proprietary third-party hedge fund product and a CHF 13 million write-down of intangible assets related to our realignment, both in 4Q06. These declines were partially offset by increased professional fees.

QoQ:Up 11% from CHF 167 million to CHF 185 million

The increase was mainly driven by higher professional fees.

Commission expenses

YoY: Down 1% from CHF 110 million to CHF 109 million

Commission expenses were stable.

QoQ: Up 15% from CHF 95 million to CHF 109 million

The increase reflected increased business activity.

Personnel

In 4Q07, headcount was up 200 from 3Q07 and 4Q06. In 4Q07, we continued to hire investment talent and build product development and distribution capabilities. The acquisition of Hedging-Griffo in 4Q07 added 80 employees.

Overview of Results and Assets under Management

Results

The Results section shows the performance of our integrated banking organization at a glance.

Assets under Management

The Assets under Management section describes developments in net new assets, assets under management and client assets for our asset-gathering franchises.

Results

< td width="3" height="16">44.7< td width="3" height="16">

				Investment Banking														Private Banking						Asset Management						Corporate Center						Core Results	1					Cred it Suisse
								Wealth Management				Corporate & Retail Banking
in / end of period	4Q07		3Q07	4Q06	4Q07		3Q07	4Q06	4Q07	3Q07		4Q06		4Q07		3Q07		4Q06		4Q07		3Q07		4Q06		4Q07		3Q07		4Q06		4Q07		3Q07		4Q06		4Q07		3Q07		4Q06
Statements of income (CHF million)
Net revenues	3,918	2	2,097	6,085	2,476< /b>		2,344	2,077	1,002	981		896		3,478		3,325		2,973	< /sup>	354	3	594		738		(12)		4		20		7,738		6,020		9 ,816		9,413		6,842		10,814
Provision for credit losses	210		20	20	2		(1)	(17)	(8)	(16)		(24)		(6)		(17)		(41)		(1)		0		1		0		1		0		203		4		(20)	203		4		(20)
Compensation and benefits	2,080		839	2,566	778		812	714	320	340		323		1,098		1,152		1,037		308		287		327	4	(29)		76		117		< font style="font-family:arial,helvetica,sans-serif;font-size:8pt">3,457		2,354		4,047		3,468		2,392		4,100
General and administrative expenses	941		864	847	513		437	403	255	236		233		768		673		636		185		167		211	5	110		8		103		2,004		1,712		1,797		2,022		1,743		1,815
Commission expenses	359		368	310	207		196	166	34	32		32		241		228		198		109		95		110		(15)		(24)		(13)		694		667		605		694		667		605
Total other operating expenses	1,300		1,232	1,157	720		633	569	289	268		265		1,009		901		834		294		262		321		95		(16)		90		2,698		2,379		2,402		2,716		2,410		2,420
Total operating expenses	3,380		2,071	3,723	1,498		1,445	1,283	609	608		588		2,107		2,053		1,871		602		549		648		66		60		207		6,155		4,733		6,449		6,184		4,802		6,520
Income from continuing operations before taxes	328		6	2,342	976		900	811	401	389		332		1,377		1,289		1,143		(247)		45		89		(78)		(57)		(187)		1,380		1,283		3,387		3,026		2,036		4,314
Income tax expense	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		(15)		(32)		805		(15)		(32)		805
Minority interests	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		66		13		(17)		1,712		766		910
Income from continuing operations	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		1,329		1,302		2,599		1,329		1,302		2,599
Income from discontinued operations	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		0		0		2,074		0		0		2,074
Net income	–		–	–	&nd ash;		–	–	–	–	< font style="font-family:arial,helvetica,sans-serif;font-size:8pt">	–		–		–		–		–		–		–		–		–		–		1,329		1,302		4,673		1,329		1,302		4,673
Statement of income metrics (%)
Compensation/revenue ratio	53.1		40.0	42.2	31.4		34.6	34.4	31.9	34.7		36.0		31.6		34.6		34.9		87.0		48.3		44.3		–		–		–			39.1		41.2		36.8		35.0		37.9
Non-compensation/revenue ratio	33.2		58.8	19.0	29.1		27.0	27.4	28.8	27.3		29.6		29.0		27.1		28.1		83.1		44.1		43.5		–		–		–		34.9		39.5		24.5		28.9		35.2		22.4
Cost/income ratio	86.3		98.8	61.2	60.5	< /font>	61.6	61.8	60.8	62.0		65.6		60.6		61.7		62.9		170.1		92.4		87.8		–		–		–		79.5		78.6		65.7		65.7		70.2		60.3
Pre-tax income margin	8.4		0.3	38.5	39.4		38.4	39.0	40.0	39.7		37.1		39.6		38.8		38.4		(69.8)		7.6		12.1		–		–		–		17.8		21.3		34.5		32.1		29.8		39.9
Tax rate	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		(1.1)		(2.5)		23.8		(0.5)		(1.6)		18.7
Net income margin from continuing operations	–		–	–	–		–	–	–	–		–< /font>		–		–		–		–		–		–		–		–		–		17.2		21.6		26.5		14.1		19.0		24.0
Net income margin	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		17.2		21.6		47.6		14.1		19.0		43.2
Utilized economic capital and return
Average utilized economic capital (CHF million)	19,182		19,111	19,087	1,724		1,664	1,486	3,061	3,030		3,379	4,785		4,694		4,865		1,932		1,689		1,539		369	6	803	6	1,592	6	26,261		26,277		26,880		26,261		26,277		26,880
Pre-tax return on average utilized economic capital (%)7	7.9		1.3	51.4	228.6		218.8	223.6	52.5	51.3		39.4		115.9		110.7		95.7		(48.6)		13.9		30.2		–		–		–		22.1		20.7		52.8		47.2		32.2		66.6
Post-tax return on average utilized economic capital from continuing operations (%)7	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		21.1		20.8		40.5		21.1		20.8		40.5
Post-tax return on average utilized economic capital (%)7	–		–	–	–		–	–	–	–		–		–		–		–		–		–		–		–		–		–		21.1		20.8		71.4		21.1		20.8		71.4
Balance sheet statistics (CHF million)
Total assets	1,141,778		1,156,573	1,046,557	268,871		261,277	229,731	107,929	109,447		111,010		376,800		370,724		340,741		27,784		32,457		20,448		(201,947)		(198,677)		(167,794)		1,344,415		1,361,077		1,239,952		1,361,718		1,376,442		1,255,956
Net loans	64,892		53,097	44,285	76,265	< /font>	76,093	69,156	99,241	97,256		94,514		175,506		173,349		163,670		–		–		–		136		513		172		240,534		226,959		208,127		240,534		226,959		208,127
Goodwill	7,465		7,551	7,809	794	< /td>	613	610	181	181		181		975		794		791		2,442		2,332		2,423		–		–		–		10,882		10,677		11,023		10,882		10,677		11,023
Number of employees (full-time equivalents)																																											< /sup>
Number of employees	20,600		20,300	18,700	14,300		13,900	13,400	8,900	8,900		8,800		23,200		22,800		22,200		3,600		3,400		3,400		700		700		600		48,100		47,200		44,900		48,100		47,200		44,900
1    Core Results include the results of our integrated banking business, excluding revenues and expenses in respect of minority interests without significant economic interest.      2    Includes valuation reductions of CHF 1,259 million relating to leveraged finance and structured products.      3    Includes valuation reductions of CHF 774 million from securities purchased from our money market funds.      4    Includes CHF 20 million of severance costs relating to the realignment.      5    Includes CHF 13 million of intangible asset impairments relating to the realignment.      6    Includes diversification benefit.      7&nb sp;   Calculated using a return excluding interest costs for allocated goodwill.

Assets under Management

Assets under management

Assets under management comprise assets which are placed with us for investment purposes and include discretionary and advisory counterparty assets.

Discretionary assets are assets for which the customer fully transfers the discretionary power to a Credit Suisse entity with a management mandate. Discretionary assets are reported in the segment in which the investment advice is provided, as well as in the segment in which distribution takes place. Any duplication of assets managed on behalf of other segments is eliminated at the Group level.

Advisory assets include assets placed with us where the client is provided access to investment advice but retains discretion over investment decisions.

As of the end of 4Q07, assets under management amounted to CHF 1,554.7 billion, up CHF 69.6 billion, or 4.7%, compared to the end of 4Q06. Compared to the end of 3Q07, assets under management were down CHF 16.6 billion, or 1.1%, reflecting net new asset outflows in Asset Management and adverse foreign exchange-related movements and market movements. The reduction was partially offset by the acquisition of Hedging-Griffo, which added CHF 30.8 billion to assets under management at the time of acquisition.

In Private Banking, assets under management were up CHF 55.1 billion, or 5.9%, compared to the end of 4Q06 and up CHF 3.7 billion compared to the end of 3Q07. In Asset Management, assets under management increased CHF 21.4 billion, or 3.2%, compared to the end of 4Q06 and decreased CHF 22.8 billion, or 3.2%, compared to the end of 3Q07.

Net new assets

Net new assets include individual cash payments, security deliveries and cash flows resulting from loan increases or repayments. Interest and dividend income credited to clients, commissions, interest and fees charged for banking services are not included as they do not reflect success in acquiring assets under management. Furthermore, changes due to currency and market movements as well as asset inflows and outflows due to the acquisition or divestiture of businesses are not part of net new assets.

We recorded net new asset outflows of CHF 10.5 billion in 4Q07, primarily due to outflows of CHF 24.9 billion in Asset Management, mainly money market assets. Private Banking contributed net new assets of CHF 14.1 billion.

Client assets

Client assets is a broader measure than assets under management as it includes transactional and custody accounts (assets held solely for transaction-related or safekeeping/custody purposes) and assets of corporate clients and public institutions used primarily for cash management or transaction-related purposes.

< td align="right">YoY

Assets under management and client assets
			end of			% change
	4Q07	3Q07	4Q06	QoQ
Assets under management (CHF billion)
Wealth Management	838.6	834.7	784.2	0.0		6.9
Corporate & Retail Banking	156.8	157.0	156.1	0.0		0.0
Private Banking	995.4	991.7	940.3	0.0	< /font>	5.9
Asset Management	691.3	714.1	669.9	(3.2)		3.2
Assets managed on behalf of other segments	(132.0)	(134.5)	(125.1)	(1.9)		5.5
Assets under management	1,554.7	1,571.3	1,485.1	(1.1)		4.7
of which discretionary assets	678.8	701.4	656.2	(3.2)		3.4
of which advisory assets	875.9	869.9	828.9	0.7		5.7
Client assets (CHF billion)
Wealth Management	928.8	920.0	848.0	1.0		9.5
Corporate & Retail Banking	230.6	234.1	221.7	(1.5)		4.0
Private Banking	1,159.4	1,154.1	1,069.7	0.0	< /sup>	8.4
Asset Management	721.7	749.3	676.4	(3.7)		6.7
Assets managed on behalf of other segments	(132.0)	(134.5)	(125.1)	(1.9)		5.5
Client assets	1,749.1	1,768.9	1,621.0	(1.1)< /font>		7.9

Growth in assets under management
				in			% change			in	% change
	4Q07	3Q07		4Q06	QoQ		YoY	2007		2006	YoY
Growth in assets under management (CHF billion)
Wealth Management	12.0	9.7		8.6	–		–	50.2		50.5	–
Corporate & Retail Banking	2.1	2.4		1.1	–		–	3.3		1.7	–
Private Banking	14.1	12.1		9.7	–	< /font>	–	53.5		52.2	–
Asset Management	(24.9)	(20.9)		(2.9)	–		–	3.6		50.8	–
Assets managed on behalf of other segments	0.3	(0.9)		0.1	–		–	(6.7)		(7.6)	–
Net new assets	(10.5)	(9.7)		6.9	–		–	50.4		95.4	–
Wealth Management	(8.1)	(35.5)	1	22.4	–		–	4.2	1	40.4	–
Corporate & Retail Banking	(2.2)	(1.1)		4.0	–		–	(2.5)		10.1	–
Private Banking	(10.3)	(36.6)		26.4	–		–	1.7		50.5	–
Asset Management	2.1	(14.6)		13.2	–		–	17.8	2	29.7	–
Assets managed on behalf of other segments	2.1	3.2		(2.7)	–		–	(0.3)		(9.9)	–
Other effects	(6.1)	(48.0)		36.9	–		–	19.2		70.3	–
Wealth Management	3.9	(25.8)		31.0	–		–	54.4		90.9	–
Corporate & Retail Banking	(0.1)	1.3		5.1	–		–	0.8		11.8	–
Private Banking	3.8	(24.5)		36.1	–		–	55.2		102.7	–
Asset Management	(22.8)	(35.5)		10.3	–	< /sup>	–	21.4		80.5	–
Assets managed on behalf of other segments	2.4	2.3		(2.6)	–		–	(7.0)		(17.5)	–
Growth in assets under management	(16.6)	(57.7)		43.8	&ndas h;		–	69.6		165.7	–
Growth in assets under management (%)												< /font>
Wealth Management	5.7	4.5		4.6	–		–	6.4		7.3	–
Corporate & Retail Banking	5.3	6.0		2.9	–		–	2.1		1.2	–
Private Banking	5.7	4.8		4.3	–		–	5.7		6.2	–
Asset Management	(13.9)	(11.2)		(1.8)	–		–	0.5		8.6	–
Assets managed on behalf of other segments	(0.9)	2.6		(0.3)	–		–	5.4		7.1	–
Net new assets	(2.7)	(2.4)		1.9	–		–	3.4		7.2	–
Wealth Management	(3.9)	(16.5)	1	11.9	–		–	0.5	1	5.8	–
Corporate & Retail Banking	(5.6)	(2.8)		10.6	–		–	(1.6)		7.0	–
Private Banking	(4.2)	(14.4)		11.7	–		–	0.2		6.0	–
Asset Management	1.2	(7.8)		8.0	–		–	2.7	2	5.0	–
Assets managed on behalf of other segments	(6.2)	(9.2)		8.8	–		–	0.2		9.2	–
Other effects	(1.5)	(11.8)		10.2	–		–	1.3		5.3	–
Wealth Management	1.8	(12.0)		16.5	–		–	6.9		13.1	–
Corporate & Retail Banking	(0.3)	3.2		13.5	–		–	0.5		8.2	–
Private Banking	1.5	(9.6)		16.0	–		–	5.9		12.2	–
Asset Management	(12.7)	(19.0)		6.2	–		–	3.2		13.6	–
Assets managed on behalf of other segments	(7.1)	(6.6)		8.5	–		–	5.6		16.3	–
Growth in assets under management	(4.2)	(14.2)		12.1	–		–	4.7		12.5	–
1    The reduction in assets under management also reflects CHF 21.6 billion of corporate cash now reported only in client assets.      2    Includes outflows as a result of the sale of the insurance business.

Growth in assets under management (continued)
			in		% change
	4Q07	3Q07	4Q06	QoQ	YoY
Growth in assets under management (rolling four-quarter average) (%)
Wealth Management	6.4	6.2	7.3	–	–
Corporate & Retail Banking	2.1	1.5	1.2	–	–
Private Banking	5.7	5.4	6.2	–	–
Asset Management	0.5	3.9	8.6	–	–
Assets managed on behalf of other segments	5.4	5.6	7.1	–	–
Net new assets	3.4	4.7	7.2	–	–

Assets under management by currency
end of period	USD	EUR	CHF	Other		Total
4Q07 (CHF billion)
Wealth Management	333.8	244.3	156.1	104.4		838.6
Asset Management	206.4	105.9	297.9	81.1		691.3
4Q07 (% of total)
Wealth Management	39.8	29.1	18.6	12.5	< /font>	100.0
Asset Management	29.9	15.3	43.1	11.7		100.0

Balance Sheet, Capital and Risk

Balance Sheet

Our balance sheet is managed in line with our capital resources and risk. We describe the main balance sheet trends in this section.

Capital Management

We allocate capital to our businesses based on our internal economic capital measure. Developments in our statutory shareholders’ equity and regulatory BIS capital are also described in this section.

Risk Management

Risk management is a continuous process that extends well beyond formal policies, methodologies and tools. Nonetheless, the position risk, Value-at-Risk and credit risk measures presented in this section provide a good overview of our exposure levels.

Balance Sheet

The reduction of our balance sheet reflected the change in foreign exchange rates and a decrease in business activity mainly in Investment Banking. Total assets decreased to CHF 1,361.7 billion and total liabilities decreased to CHF 1,317.7 billion from 3Q07.

Total assets were CHF 1,361.7 billion as of the end of 4Q07, down from CHF 1,376.4 billion as of the end of 3Q07, driven by decreases in Investment Banking assets. Trading assets increased CHF 2.1 billion, reflecting an increase of CHF 13.5 billion in derivative instruments partly offset by a decrease of CHF 11.5 billion in debt securities and CHF 1.3 billion in equity securities. Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions decreased CHF 27.6 billion, mainly driven by a decline in business activity. Net loans increased CHF 13.6 billion, primarily commercial loans outside Switzerland.

Total liabilities were CHF 1,317.7 billion as of the end of 4Q07, down from CHF 1,334.5 billion as of the end of 3Q07. Trading liabilities decreased CHF 22.6 billion, mainly due to a decrease of CHF 25.7 billion in short positions partly offset by an increase of CHF 3.1 billion in derivative instruments.

Balance sheet summary
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Assets (CHF million)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	296,709	324,323	319,048	(9)		(7)
Trading assets	533,247	531,100	450,780	0		18
Net loans	240,534	226,959	208,127	6		16
All other assets	291,228	294,060	278,001	(1)		5
Total assets	1,361,718	1,376,442	1,255,956	(1)		8
Liabilities and shareholders' equity (CHF million)
Due to banks	90,864	101,294	97,514	(10)		(7)
Customer deposits	335,505	334,467	290,864	0	< /sup>	15
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	300,381	302,638	288,444	(1)		4
Trading liabilities	201,809	224,412	198,422	(10)	< sup>	2
Long-term debt	160,157	162,797	147,832	(2)		8
All other liabilities	229,022	208,869	189,294	10	< sup>	21
Total liabilities	1,317,738	1,334,477	1,212,370	(1)		9
Total shareholders' equity	43,980	41,965	43,586	5		1
Total liabilities and shareholders' equity	1,361,718	1,376,442	1,255,956	(1)		8

Capital Management

Our consolidated BIS tier 1 ratio was 11.4% as of the end of 4Q07, a decrease from 12.0% as of the end of 3Q07. Our economic capital coverage ratio was up 15 percentage points from 145% to 160% due to reduced utilized economic capital and higher economic capital resources.

< td align="right">(92)

Capital
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Shares outstanding (million)
Common shares issued	1,162.4	1,162.2	1,214.9	0		(4)
Second trading line treasury shares1	(46.1)	(42.2)	(42.4)	9		9
Other treasury shares	(95.7)	(99.4)	(110.0)	(4)		(13)
Treasury shares	(141.8)	(141.6)	(152.4)	0		(7)
Shares outstanding	1,020.6	1,020.6	1,062.5	0	(4)
Par value (CHF)
Par value2	0.04	0.04	0.50	0		(92)
Shareholders' equity (CHF million)
Common shares	46	46	607	0
Additional paid-in capital	24,553	24,010	24,817	2		(1)
Retained earnings	34,459	33,127	32,306	4		7
Second trading line treasury shares, at cost	(3,918)	(3,641)	(3,077)	8		27
Other treasury shares, at cost	(5,460)	(5,726)	(6,034)	(5)		(10)
Treasury shares, at cost	(9,378)	(9,367)	(9,111)	0		3
Accumulated other comprehensive income	(5,700)	(5,851)	(5,033)	(3)		13
Total shareholders' equity	43,980	41,965	43,586	5		1
Goodwill	(10,882)	(10,677)	(11,023)	2	< /font>	(1)
Other intangible assets	(444)	(507)	(476)	(12)		(7)
Tangible shareholders' equity3	32,654	30,781	32,087	6		2
Book value per share (CHF)
Total book value per share	43.09	41.12	41.02	5		5
Goodwill per share	(10.66)	(10.46)	(10.37)	2		3
Other intangible assets per share	(0.44)	(0.50)	(0.45)	(12)		(3)
Tangible book value per share	31.99	30.16	30.20	6		6
1    These shares are repurchased in connection with our share buyback program and will be subsequently cancelled, subject to shareholder approval.      2    On May 4, 2007, the shareholders of Credit Suisse Group approved a par value reduction of CHF 0.46 per share which was paid out on July 18, 2007.      3    Tangible shareholders' equity is calculated by deducting goodwill and other intangible assets from total shareholders' equity. Management believes that the return on tangible shareholders' equity is meaningful as it allows for the consistent measurement of the performance of businesses without regard to whether the businesses were acquired.

Shareholders’ equity

Our shareholders’ equity increased from CHF 42.0 billion as of the end of 3Q07 to CHF 44.0 billion as of the end of 4Q07, primarily due to 4Q07 net income and the effect of share-based compensation. Other comprehensive income reflected the negative effect of foreign exchange rate changes on cumulative translation adjustments, which were more than offset by pension actuarial gains.

During 4Q07, we repurchased 3.9 million common shares in the amount of CHF 0.3 billion under the share buyback program. As of the end of January 2008, we had repurchased a total of CHF 4.1 billion, or 51%, of the approved CHF 8.0 billion. As a result of the challenging operating environment, we reduced our share buyback activity in the second half of 2007. Our ability to complete the share buyback program in 2008 is dependent on market conditions.

BIS statistics

Our consolidated BIS tier 1 ratio under Basel I was 11.4% as of the end of 4Q07, a decrease from 12.0% as of the end of 3Q07. The decrease was driven primarily by an increase in risk-weighted assets and a decrease in our tier 1 capital.

Our tier 1 capital decreased from CHF 35.9 billion as of the end of 3Q07 to CHF 35.5 billion as of the end of 4Q07. The decrease of CHF 0.4 billion, or 1%, was primarily related to other adjustments, which reflected additional dividend accruals and the reversal of the pension actuarial gains recorded in total shareholders’ equity. Our consolidated total capital increased from CHF 45.7 billion as of the end of 3Q07 to CHF 45.9 billion as of the end of 4Q07, and the total capital ratio was 14.7% as of the end of 4Q07, a decrease from 15.3% as of the end of 3Q07. The decrease in the total capital ratio was primarily related to the increase in risk-weighted assets, offset in part by an increase in tier 2 capital.

Risk-weighted assets increased CHF 13.4 billion, or 4%, from 3Q07 mainly due to increased market risk equivalents. Market risk equivalents increased due to the increase in market volatility and the recalibration of our VaR model implemented in 3Q07.

As of the end of 4Q07, the BIS tier 1 ratio under Basel II would have been approximately 120 basis points less than the BIS tier 1 ratio of 11.4% under Basel I.

BIS statistics
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Risk-weighted assets (CHF million)
Risk-weighted positions	277,528	278,679	240,095	0		16
Market risk equivalents	34,540	20,009	13,581	73		154
Risk-weighted assets	312,068	298,688	253,676	4		23
Capital (CHF million)
Total shareholders' equity	43,980	41,965	43,586	5		1
Goodwill	(10,882)	(10,677)	(11,023)	2	< /font>	(1)
Investments in insurance entities (50%)	(71)	(90)	(22)	(21)		223
Non-cumulative perpetual preferred securities and capital notes	4,136	4,180	2,167	(1)		91
Other adjustments	(1,645)	510	439	–		–
Tier 1 capital	35,518	35,888	35,147	(1)		1
Upper tier 2	2,860	2,906	4,733	(2)		(40)
Lower tier 2	8,565	8,064	8,587	6		0
Tier 2 capital	11,425	10,970	13,320	4		(14)
Investments in non-consolidated banking and finance participations and credit enhancements	(989)	(1,086)	(1,681)	(9)		(41)
Investments in insurance entities (50%)	(71)	(90)	(22)	(21)		223
Total capital	45,883	45,682	46,764	0		(2)
Capital ratios (%)
Tier 1 ratio	11.4	12.0	13.9	–		–
Total capital ratio	14.7	15.3	18.4	–		–
The Swiss Federal Banking Commission (EBK) has advised that Credit Suisse Group may continue to include as tier 1 capital CHF 1.8 billion, CHF 1.9 billion and CHF 2.2 billion in 4Q07, 3Q07 and 4Q06, respectively, of equity from special purpose entities which are deconsolidated under FIN 46(R).

Economic capital

Economic Capital is used as a consistent and comprehensive tool for risk management, capital management and performance measurement. Economic capital is the estimated capital needed to remain solvent and in business, even under extreme market, business and operational conditions, given the institution’s target financial strength (i.e., long-term credit rating).

Under Pillar II of the Basel II framework (also referred to as the Supervisory Review Process), banks are required to implement a robust and comprehensive framework for assessing capital adequacy, defining internal capital targets and ensuring that these capital targets are consistent with the overall risk profile and the current operating environment. Our economic capital framework has an important role under Pillar II, as it represents our internal view of the amount of capital required to support our business activities.

Economic capital is calculated separately for position risk, operational risk and other risk. These three risks are defined as follows:

Position risk the level of unexpected loss in economic value on our portfolio of positions over a one-year horizon which is exceeded with a given, small probability (1% for risk management purposes; 0.03% for capital management purposes).

Operational risk the level of loss resulting from inadequate or failed internal processes, people and systems or from external events over a one-year horizon which is exceeded with a small probability (0.03%). Estimating this type of economic capital is inherently more subjective, and reflects both quantitative tools as well as senior management judgment.

Other risk the risk not captured by the above, for example expense risk and owned real estate risk. Expense risk is defined as the difference between expenses and revenue in a severe market event, exclusive of the elements captured by position risk and operational risk. Owned real estate risk is defined as the risk associated with the buildings we own.

Position risk, operational risk and other risk are used to determine our utilized economic capital.

The economic capital methodology is regularly reviewed in order to ensure that the model remains relevant as markets and business strategies evolve. There have been no changes to the economic capital methodology in 4Q07.

Economic capital
			in / end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Economic capital resources (CHF million)
Tier 1 capital	35,518	35,888	35,147	(1)		1
Economic adjustments	4,768	3,842	4,971	24		(4)
Economic capital resources	40,286	39,730	40,118	1		0
Utilized economic capital (CHF million)
Position risk (99.97% confidence level)	21,660	23,836	22,548	(9)		(4)
Operational risk	2,469	2,515	2,567	(2)		(4)
Other risks1	1,040	1,002	1,648	4		(37)
Utilized economic capital	25,169	27,353	26,763	(8)< /td>		(6)
Economic capital coverage ratio (%)
Economic capital coverage ratio	160.1	145.2	149.9	–		–
Utilized economic capital by segment (CHF million)
Investment Banking	17,951	20,412	19,366	(12)		(7)
Wealth Management	1,755	1,693	1,431	4		23
Corporate & Retail Banking	3,083	3,038	3,249	1		(5)
Private Banking	4,838	4,731	4,680	2		3
Asset Management	2,025	1,839	1,485	10	< /font>	36
Corporate Center	358	381	1,297	(6)		(72)
Utilized economic capital - Credit Suisse2	25,169	27,353	26,763	(8)		(6)
Average utilized economic capital by segment (CHF million)
Investment Banking	19,182	19,111	19,087	0		0
Wealth Management	1,724	1,664	1,486	4		16
Corporate & Retail Banking	3,061	3,030	3,379	1		(9)
Private Banking	4,785	4,694	4,865	2		(2)
Asset Management	1,932	1,689	1,539	14	< /font>	26
Corporate Center	369	803	1,592	(54)		(77)
Average utilized economic capital - Credit Suisse3	26,261	26,277	26,880	0		(2)
1    Includes owned real estate, expense risk and diversification benefit.      2    Includes a diversification benefit of CHF 3 million as of the end of 4Q07.      3    Includes a diversification benefit of CHF 7 million in 4Q07.

Utilized economic capital trends in 4Q07

Over the course of 4Q07, our utilized economic capital fell 8% due to a decrease in position risk. For Investment Banking, utilized economic capital decreased 12%, mainly driven by a decline in real estate and structured assets and fixed income trading exposures. Real estate and structured assets position risk decreased due to the reduction of commercial real estate loan commitments, sales and securitizations of commercial real estate loan exposures and hedging of residential real estate exposures. Fixed income trading position risk was lower following reductions in credit spread exposures. These reductions were partially offset by increases in emerging market exposures and international lending and counterparty exposures.

The utilized economic capital for Wealth Management increased 4% due to increased residential mortgage loan exposures, while utilized economic capital for Corporate & Retail Banking increased 1%, mainly due to emerging markets trade finance exposures.

Asset Management utilized economic capital increased 10% as a result of higher private equity exposures.

Corporate Center utilized economic capital decreased 6% due to reduced equity investments.

Capital adequacy trends in 4Q07

The economic capital coverage ratio improved 15 percentage points from 145% to 160% over 4Q07 due to decreases in utilized economic capital due to a reduction in position risk over the quarter and higher economic capital resources. Our coverage ratio remained above our target band of 100% to 140%.

Risk Management

In 4Q07, our overall 99% position risk, measured on the basis of the economic capital model, decreased 10% compared to 3Q07, mainly driven by lower real estate and structured assets and fixed income trading exposures. Average one-day, 99% VaR for our trading books increased 85% to CHF 176 million. The increase in VaR was mainly due to the increase in observed market volatility. We reported a provision for credit losses of CHF 203 million in 4Q07.

Economic capital

Economic capital represents our core Group-wide risk management tool. We use it to monitor, report and limit risk exposures at many levels of the organization. The Board of Directors and senior management are regularly provided with economic capital results, trends and ratios, together with supporting explanations to ensure risk transparency. We also use economic capital in our capital allocation process and related performance measures. Moreover, economic capital serves as a reference point for the structured assessment of our aggregate risk appetite in relation to our financial resources, recognizing that comprehensive analyses must also take into account factors that are outside the scope of the economic capital framework (for example, strategy, economic and competitive environment and external constraints such as those imposed by regulators or rating agencies.)

The economic capital methodology is regularly reviewed in order to ensure that the model remains relevant as markets and business strategies evolve. There have been no changes to the economic capital methodology in 4Q07.

Position risk
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Position risk (CHF million)
Fixed income trading1	2,280	2,601	2,692	(12)		(15)
Equity trading and investments	2,911	2,696	2,522	8		15
Private banking corporate and retail lending	2,286	2,264	2,174	1		5
International lending and counterparty exposures	3,870	3,848	3,417	1		13
Emerging markets	2,040	1,822	1,775	12	< /font>	15
Real estate and structured assets2	3,252	4,759	4,738	(32)		(31)
Simple sum across risk categories	16,639	17,990	17,318	(8)		(4)
Diversification benefit	(4,682)	(4,751)	(4,801)	(1)		(2)
Position risk (99% confidence level for risk management purposes)	11,957	13,239	12,517	(10)		(4)
Position risk (99.97% confidence level for capital management purposes)	21,660	23,836	22,548	(9)		(4)
Prior balances have been restated for methodology changes in order to show meaningful trends.
1    This category comprises fixed income trading, foreign exchange and commodity exposures.      2    This category comprises the real estate investments of the Group, commercial and residential real estate, asset-backed securities exposure and real estate acquired at auction.

Key position risk trends

During 4Q07, our 99% position risk decreased 10% compared to 3Q07, mainly driven by lower real estate and structured assets and fixed income trading exposures. Real estate and structured assets position risk decreased due to reductions in commercial real estate loan commitments, reductions in commercial real estate loans through securitizations and sales and hedging of residential real estate exposures. Fixed income trading position risk was lower following reductions in credit spread exposures. These reductions were partially offset by increases in equity trading and investments position risk due to increased trading and private equity exposures and emerging markets position risk, primarily due to increased exposures in the Middle East and Asia. International lending and counterparty exposures were up 1% over the quarter due to increases in derivatives exposures in Investment Banking.

Compared to the end of 4Q06, our 99% position risk decreased 4%, mainly driven by reductions in real estate and structured assets and fixed income trading exposures. The decrease in real estate and structured assets was due to reduced asset-backed securities and residential mortgage exposures. Fixed income trading position risk was down due to reduced credit spread and interest rate exposures, partially offset by increases in energy and other commodity exposures. International lending and counterparty exposures were up due to increased derivatives exposures within Investment Banking. Equity trading and investments were higher due to increased private equity and hedge fund exposures. We increased emerging markets exposures primarily in Asia, Eastern Europe and the Middle East.

As part of our overall risk management, we hold a portfolio of hedges. Hedges are impacted by market movements, similar to other trading securities, and may result in gains or losses on the hedges which offset losses or gains on the portfolios they were designed to hedge.

Market risk

We primarily assume trading risks through the trading activities in Investment Banking. The other divisions also engage in trading activities, but to a much lesser extent. Trading risks are measured using VaR along with a number of other risk measurement tools. VaR is the potential loss in fair value of trading positions due to adverse market movements over a defined time horizon and for a specified confidence level. VaR relies on historical data and is considered a useful tool for estimating potential loss in normal markets in which there are no abrupt changes in market conditions. Other tools are more appropriate for modeling the impact from severe market conditions.

In order to show the aggregate market risk in our trading books, the table entitled “Daily VaR” shows the trading-related market risk on a consolidated basis. It shows ten-day VaR scaled to a one-day holding period and is based on a 99% confidence level. This means that there is a 1-in-100 chance of incurring a daily mark-to-market trading loss that is at least as large as the reported VaR.

Our average one-day, 99% VaR during 4Q07 was CHF 176 million compared to CHF 95 million during 3Q07 and CHF 70 million during 4Q06. Our end-of-period one-day, 99% VaR was CHF 216 million compared to CHF 160 million as of the end of 3Q07. The increase in VaR during 4Q07 was mainly due to the update of market data used to calculate VaR, reflecting the significant increase in observed market volatility. The average VaR was also impacted by the recalibration of our VaR model that was implemented during 3Q07 and the increased equity and commodity exposure.

< td align="right">(69)

One-day, 99% VaR
in / end of period	Interest rate and credit spread	Foreign exchange	Commodity	Equity	Diversi- fication benefit		Total
4Q07 (CHF million)
Average	110	38	22	89	(83)		176
Minimum	87	21	16	72	–	1	144
Maximum	131	58	36	122	–	1	216
End of period	124	48	31	91	(78)		216
3Q07 (CHF million)
Average	73	22	18	71	(89)		95
Minimum	47	8	13	51	–	1	74
Maximum	101	41	21	102	–	1	160
End of period	100	34	18	86	(78)		160
4Q06 (CHF million)
Average	49	19	12	57	(67)		70
Minimum	42	9	6	44	–	1	53
Maximum	63	28	16	69	–	1	99
End of period	62	24	15	57		89
1    As the maximum and minimum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit.

We regularly review our VaR model to ensure that it remains appropriate given evolving market conditions and the composition of our trading portfolio. The recalibration of our VaR model that was implemented in 3Q07 was fully reflected in the average VaR for 4Q07 but was only included in part of the average for 3Q07. If the recalibration of our VaR model had been in place throughout all of 3Q07, the average one-day, 99% VaR for 3Q07 would have been CHF 116 million.

In addition, during 4Q07 we continued to extend the length of the historical data set used in the VaR model beyond two years in order to capture more historical events. Various techniques are used to assess the accuracy of the VaR model, including backtesting. In line with industry practice, we present backtesting using actual daily trading revenues. Actual daily trading revenues are compared with VaR calculated using a one-day holding period. A backtesting exception occurs when the trading revenues loss exceeds the daily VaR estimate. We had one backtesting exception during 4Q07, which was driven by the increased market volatility.

The histogram entitled “Actual daily trading revenues” reflects the distribution of actual daily trading revenues during 4Q07, 3Q07 and 4Q06. The width of this distribution provides another indication of the day-to-day risk in our trading activities.

We assume non-trading interest rate risks through interest rate-sensitive positions originated by Private Banking and risk-transferred to Global Treasury, money market and funding activities by Global Treasury and the deployment of our consolidated equity as well as other activities, including market-making and trading activities involving banking book positions at the divisions. Savings accounts and many other retail banking products have no contractual maturity date or direct market-linked interest rate and are risk-transferred from Private Banking to Global Treasury on a pooled basis using replicating portfolios (approximating the re-pricing behavior of the underlying product). Global Treasury, as well as other desks running interest rate risk positions, actively manage their positions within approved limits.

An increase of the yield curves by 1 basis point would result in a reduction in the fair value of our interest rate-sensitive banking book positions of CHF 4.4 million, compared to CHF 1.9 million as of the end of 3Q07. The change is mainly due to a longer duration on our deployed equity combined with a reduction in the short bond interest rate exposure in the Global Treasury banking books.

Credit risk

We encounter credit risk in our lending-related businesses, in counterparty trading and through issuer risk in trading assets. The majority of our credit risk is concentrated in Investment Banking and Private Banking. The credit risks taken on by Private Banking are usually collateralized. In Investment Banking, a significant portion of credit risk-related businesses are mitigated through cash and marketable collateral or transferred to the market by credit derivatives, largely reducing credit risk in economic terms.

Loan exposure

Gross loans increased 6% to CHF 241.8 billion as of the end of 4Q07 compared to 3Q07. In Investment Banking, gross loans increased 22% to CHF 65.3 billion, due to growth in commercial and industrial loans as well as loans to financial institutions. Gross loans in Private Banking increased 1% to CHF 176.4 billion, primarily due to an increase in commercial and industrial loans.

Compared to 3Q07, gross impaired loans increased 8% primarily due to an increase of CHF 214 million in non-performing loans in Investment Banking, offset in part by a decline in non-performing loans in Private Banking. As a result of this increase, coverage of gross impaired loans by valuation allowances decreased from 73% to 63% and coverage of total non-performing loans by valuation allowances decreased from 106% to 91%. The higher levels of these ratios in the previous quarters primarily reflected the reserve for inherent credit losses, which is calculated on the performing loan portfolio, compared to a lower level of impaired loans. We recorded a provision for credit losses of CHF 203 million compared to CHF 4 million in 3Q07, primarily due to higher provisions relating to a guarantee provided in a prior year to a third-party bank by Investment Banking.

Compared to 4Q06, gross loans increased CHF 32.2 billion, or 15%, reflecting growth in both Investment Banking and Private Banking. During the last 12 months, gross loans in Investment Banking increased from CHF 44.6 billion to CHF 65.3 billion, due to increases in both commercial and industrial loans and loans to financial institutions. In Private Banking, gross loans increased from CHF 164.8 billion to CHF 176.4 billion in nearly all businesses.

Compared to 4Q06, total non-performing loans declined 15% and gross impaired loans declined 9%, driven by further reductions in non-performing loans in Private Banking, offset in part by an increase in non-performing and other impaired loans in Investment Banking.

< td width="3" height="16">

Loans
			Investment Banking													Private Banking						Other	1					Credit Suisse
							Wealth Management			Corporate & Retail Banking
end of	4Q07	3Q07	4Q06	4Q07		3Q07	4Q06	4Q07	3Q07	4Q06		4Q07		3Q07		4Q06		4Q07		3Q07		4Q06		4Q07		3Q07		4Q06
Loans (CHF million)
Mortgages	0	0	0	31,450		31,254	29,505	48,128	48,685	46,435		79,578		79,939		75,940		0		0		0		79,578		79,939		75,940
Loans collateralized by securities	0	0	0	23,267		24,288	20,372	202	196	465		23,469		24,484		20,837		0		0		0		23,469		24,484		20,837
Other loans	1,017	928	1,110	916		797	558	3,786	3,402	3,087		4,702		4,199		3,645		0		0< /font>		0		5,719		5,127		4,755
Consumer loans	1,017	928	1,110	55,633	< /font>	56,339	50,435	52,116	52,283	49,987		107,749		108,622		100,422		0		0		0		108,766		109,550		101,532
Real estate	2,213	1,882	1,491	4,996		4,714	3,975	15,888	15,758	14,825		20,884		20,472		18,800		0		0		0		23,097		22,354		20,291
Commercial and industrial loans	34,661	28,550	22,616	10,661		9,104	7,986	27,910	26,328	27,123		38,571		35,432		35,109		11		0		172		73,243		63,982		57,897
Loans to financial institutions	25,909	20,640	18,658	4,970		5,932	6,812	2,803	2,354	2,246		7,773		8,286		9,058		125		515		0		33,807		29,441		27,716
Governments and public institutions	1,459	1,444	736	67		66	16	1,349	1,445	1,415	< font style="font-family:arial,helvetica,sans-serif;font-size:8pt">	1,416		1,511		1,431		0		0		0		2,875		2,955		2,167
Corporate loans	64,242	52,516	43,501	20,694	< /sup>	19,816	18,789	47,950	45,885	45,609	< font style="font-family:arial,helvetica,sans-serif;font-size:8pt">	68,644		65,701		64,398		136		515		172		133,022		118,732		108,071
Gross loans	65,259	53,444	44,611	76,32 7		76,155	69,224	100,066	98,168	95,596		176,393		174,323		164,820		136		515		172		241,788		228,282		209,603
Net (unearned income) / deferred expenses	(72)	(64)	(71)	12		14	10	40	42	68		52		56		78		0		1		1		(20)		(7)		8
Allowance for loan losses2	(295)	(283)	(255)	(74)		(76)	(78)	(865)	(954)	(1,150)		(939)		(1,030)		(1,228)		0		(3)		(1)		(1,234)		(1,316)		(1,484)
Net loans3	64,892	53,097	44,285	76,265		76,093	69,156	99,241	97,256	94,514		175,506		173,349		163,670		136		513		172		240,534		226,959		208,127
Impaired loans (CHF million)
Non-performing loans	234	20	152	101		115	147	638	670	748		739		785		895		0		0		0		973		805		1,047
Non-interest-earning loans	0	0	2	31		30	19	346	410	524		377		440		543		0		0		0		377		440		545
Total non-performing loans	234	20	154	132		145	166	984	1,080	1,272		1,116		1,225		1,438		0		0		0		1,350		1,245		1,592
Restructured loans	42	33	0	0		0	0	7	0	22		7		0		22		0		0		0		49		33		22
Potential problem loans	175	147	34	6		12	19	366	365	464		372		377		483		0		0		0		547		524		517
Total other impaired loans	217	180	34	6		12	19	373	365	486		379		377		505		0		0		0		596		557		539
Gross impaired loans	451	200	188	138		157	185	1,357	1,445	1,758		1,495		1,602		1,943		0		0		0		1,946		1,802		2,131
of which with a specific allowance	244	200	188	137		152	177	1,182	1,228	1,437		1,319		1,380		1,614		0		0		0		1,563		1,580		1,802
of which without a specific allowance	207	0	0	1		5	8	175	217	321		176		222		329		0		0		0		383		222		329
Allowance for loan losses (CHF million)
Balance at beginning of period	283	287	255	76		78	81	954	1,005	1,190		1,030		1,083		1,271		3		2		1		1,316		1,372		1,527
Change in accounting	0	0	0	0		0	0	0	0	0		0		0		0		0		0		0		0		0		0
Discontinued operations	0	0	0	0		0	0	0	0	0		0		0		0		0		0		0		0		0		0
Net additions charged to statements of income	11	8	16	1		(1)	(18)	(7)	(15)	(24)	< font style="font-family:arial,helvetica,sans-serif;font-size:8pt">	(6)		(16)		(42)		0		(1)		1		5		(9)		(25)
Gross write-offs	(2)	(5)	(33)	(2)		(1)	(2)	(90)	(54)	(40)		(92)		(55)		(42)		0		0		(1)		(94)		(60)		(76)
Recoveries	11	4	19	0		0	17	9	25	32		9		25		49		0		0		0		20		29		68
Net write-offs	9	(1)	(14)	(2)		(1)	15	(81)	(29)	(8)		(83)		(30)		7		0		0	(1)		(74)		(31)		(8)
Provisions for interest	1	2	3	0		0	0	0	(2)	(5)		0		(2)		(5)		0		1		1		1		1		(1)
Foreign currency translation impact and other adjustments, net	(9)	(13)	(5)	(1)		0	0	(1)	(5)	(3)		(2)		(5)		(3)		(3)		1		(1)		(14)		(17)		(9)	< /td>
Balance at end of period2	295	283	255	74		76	78	865	954	1,150		939		1,030		1,228		0		3		1		1,234		1,316		1,484
of which a specific allowance	69	31	28	50		52	56	730	816	1,007		780		868		1,063		1		0		0		850		899		1,091
of which an inherent credit loss allowance	226	252	227	24		24	22	135	138	143		159		162		165		(1)		3		1		384		417		393
Loan metrics (%)																														< /font>
Total non-performing loans / gross loans	0.4	0.0	0.3	0.2		0.2	0.2	1.0	1.1	1.3		0.6		0.7		0.9		–		–		–		0.6		0.5		0.8
Total other impaired loans / gross loans	0.3	0.3	0.1	0.0		0.0	0.0	0.4	0.4	0.5		0.2		0.2		0.3		–		–		–		0.2		0.2		0.3
Gross impaired loans / gross loans	0.7	0.4	0.4	0.2		0.2	0.3	1.4	1.5	1.8		0.8		0.9		1.2		–		–		–		0.8		0.8		1.0
Allowance for loan losses / total non-performing loans	126.1	–	165.6	56.1		52.4	47.0	87.9	88.3	90.4	84.1		84.1		85.4		–		–		–		91.4		105.7		93.2
Allowance for loan losses / total other impaired loans	135.9	157.2	750.0	–		633.3	410.5	231.9	261.4	236.6		247.8		273.2		243.2		–		–		–		207.0		236.3		275.3
Allowance for loan losses / gross impaired loans	65.4	141.5	135.6	53.6		48.4	42.2	63.7	66.0	65.4		62.8		64.3		63.2		–		–		–		63.4		73.0		69.6
The disclosure presents our lending exposure from a risk management perspective. This presentation differs from loan disclosures in the Credit Suisse Financial Statements 4Q07.
1    Includes Asset Management and Corporate Center.      2    Allowance for loan losses reflects allowances on loans which are not carried at fair value.      3    Loans carried at fair value amount to CHF 31,047 million and CHF 22,345 million in 4Q07 and 3Q07, respectively.

Highlights from the Condensed Consolidated Financial Statements – unaudited

This section contains highlights from our US GAAP Condensed Consolidated Financial Statements including the statements of income, balance sheets, statements of changes in shareholders’ equity and selected notes. The Credit Suisse Financial Statements 4Q07 are available on the internet at www.credit-suisse.com/results.

To be read in conjunction with the Credit Suisse Financial Statements 4Q07.

Highlights from the Condensed Consolidated Financial Statements

< td width="3" height="16">

Consolidated statements of income (unaudited)
			in			% change				in		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Consolidated statements of income (CHF million)
Interest and dividend income	15,221	16,030	13,017	(5)		17		62,562		50,269		24
Interest expense	(13,065)	(14,071)	(11,590)	(7)		13		(54,109)		(43,703)		24
Net interest income	2,156	1,959	1,427	10		51		8,453		6,566		29
Commissions and fees	4,879	4,231	5,069	15		(4)		19,329		17,647		10
Trading revenues	457	(158)	2,956	–		(85)		7,325		9,428		(22)
Other revenues	1,921	810	1,362	137		41		5,805		4,962		17
Net revenues	9,413	6,842	10,814	38		(13)		40,912		38,603		6
Provision for credit losses	203	4	(20)	–		–		240		(111)		–
Compensation and benefits	3,468	2,392	4,100	45		(15)		16,219		15,697		3
General and administrative expenses	2,022	1,743	1,815	16		11		6,916		6,445		7
Commission expenses	694	667	605	4		15		2,612		2,272		15
Total other operating expenses	2,716	2,410	2,420	13		12		9,528		8,717		9
Total operating expenses	6,184	4,802	6,520	29	(5)		25,747		24,414		5
Income from continuing operations before taxes, minority interests and extraordinary items	3,026	2,036	4,314	49		(30)		14,925		14,300		4
Income tax expense	(15)	(32)	805	(53)	< /font>	–		1,638		2,389		(31)
Minority interests	1,712	766	910	123		88		4,738		3,630		31
Income from continuing operations before extraordinary items	1,329	1,302	2,599	2		(49)		8,549		8,281		3
Income from discontinued operations, net of tax	0	0	2,074	–		(100)		0		3,070		(100)
Extraordinary items, net of tax	0	0	0	–		–		0		(24)		100
Net income	1,329	1,302	4,673	2		(72)		8,549		11,327		(25)

< td align="right">(92)

Consolidated balance sheets (unaudited)
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Assets (CHF million)
Cash and due from banks	38,459	37,854	29,040	2		32
Interest-bearing deposits with banks	3,759	3,319	8,128	13		(54)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	296,709	324,323	319,048	(9)		(7)
Securities received as collateral, at fair value	28,314	19,647	32,385	44		(13)
Trading assets, at fair value	533,247	531,100	450,780	0		18
Investment securities	15,731	15,767	21,394	0		(26)
Other investments	28,120	26,916	20,478	4		37
Net loans	240,534	226,959	208,127	6		16
allowance for loan losses	1,234	1,316	1,484	(6)		(17)
Premises and equipment	6,149	6,144	5,990	0		3
Goodwill	10,882	10,677	11,023	2		(1)
Other intangible assets	444	507	476	(12)		(7)
Other assets	159,370	173,229	149,087	(8)		7
Total assets	1,361,718	1,376,442	1,255,956	(1)		8
Liabilities and shareholders' equity (CHF million)
Due to banks	90,864	101,294	97,514	(10)		(7)
Customer deposits	335,505	334,467	290,864	0	< /sup>	15
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	300,381	302,638	288,444	(1)		4
Obligation to return securities received as collateral, at fair value	28,314	19,647	32,385	44		(13)
Trading liabilities, at fair value	201,809	224,412	198,422	(10)		2
Short-term borrowings	19,390	21,908	21,556	(11)		(10)
Long-term debt	160,157	162,797	147,832	(2)		8
Other liabilities	164,678	152,117	120,035	8	< /sup>	37
Minority interests	16,640	15,197	15,318	9		9
Total liabilities	1,317,738	1,334,477	1,212,370	(1)		9
Common shares	46	46	607	0
Additional paid-in capital	24,553	24,010	24,817	2		(1)
Retained earnings	34,459	33,127	32,306	4		7
Treasury shares, at cost	(9,378)	(9,367)	(9,111)	0		3
Accumulated other comprehensive income/(loss)	(5,700)	(5,851)	(5,033)	(3)		13
Total shareholders' equity	43,980	41,965	43,586	5		1
Total liabilities and shareholders' equity	1,361,718	1,376,442	1,255,956	(1)		8

Consolidated statements of changes in shareholders' equity (unaudited)
	Common shares	Additional paid-in capital	Retained earnings	Treasury shares, at cost	Accumu- lated other comprehen- sive income	Total share- holders' equity		Number of common shares outstanding
2007 (CHF million)
Balance at beginning of period	607	24,817	32,306	(9,111)	(5,033)	43,586		1,062,467,061	1
Net income	–	–	8,549	–	–	8,549		–
Cumulative effect of accounting changes, net of tax	–	–	(829)	–	10	(819)	2	–
Other comprehensive income/(loss), net of tax	–	–	–	–	(677)	(677)		–
Issuance of common shares	1	59	–	–	–	60		1,389,127
Cancellation of repurchased shares3	(27)	(945)	(3,087)	4,059	–	0		–
Issuance of treasury shares	–	4	–	36,274	–	36,278		441,949,359
Repurchase of treasury shares	–	–	–	(41,879)	–	(41,879)		(507,256,244)	4
Share-based compensation, net of tax	–	861	–	1,279	–	2,140		22,078,552
Derivatives indexed to own shares5	–	(279)	–	–	–	(279)		–
Repayment out of share capital6	(535)	36	–	–	–	(499)		–
Cash dividends paid	–	–	(2,480)	–	–	(2,480)		–
Balance at end of period	46	24,553	34,459	(9,378)	(5,700)	43,980		1,020,627,855	7
2006 (CHF million)
Balance at beginning of period	624	24,639	24,584	(5,823)	(1,906)	42,118		1,125,360,183
Net income	–	–	11,327	–	–	11,327		–
Cumulative effect of accounting changes, net of tax	–	–	41	–	(1,778)	(1,737)		–
Other comprehensive income/(loss), net of tax	–	–	–	–	(1,349)	(1,349)		–
Issuance of common shares	–	48	–	–	–	48		1,109,847
Cancellation of repurchased shares	(17)	(608)	(1,316)	1,941	–	0		–
Issuance of treasury shares	–	(67)	–	17,352	–	17,285		238,906,412
Repurchase of treasury shares	–	–	–	(23,461)	–	(23,461)		(323,036,898)
Share-based compensation, net of tax	–	805	–	880	–	1,685		20,127,517
Cash dividends paid	–	–	(2,330)	–	–	(2,330)		–
Balance at end of period	607	24,817	32,306	(9,111)	(5,033)	43,586		1,062,467,061
1    At par value CHF 0.50 each, fully paid, net of 152,394,952 treasury shares. In addition to the treasury shares, a maximum of 198,476,240 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders.      2    Includes CHF 187 million related to SFAS 157, CHF (1,003) million related to SFAS 159, CHF (13) million related to FIN 48 and CHF 10 million reclassified from accumulated other comprehensive income as a result of SFAS 159, all net of tax.      3    53,789,000 treasury shares were cancelled in 3Q07.      4    Includes 57,459,000 shares repurchased in connection with Credit Suisse Group's share buyback programs.      5    The Group has p urchased certain call options on its own shares to economically hedge all or a portion of the Leverage Units element of the Incentive Share Units (ISU) granted to the employees during 1Q07 and 4Q07. In accordance with EITF 00-19, these call options are designated as equity instruments and, as such, are initially recognized in shareholders' equity at their fair values and not subsequently remeasured.      6    On May 4, 2007, the shareholders of Credit Suisse Group approved a par value reduction of CHF 0.46 per share, in addition to a dividend, which was paid out on July 18, 2007.      7    At par value CHF 0.04 each, fully paid, net of 141,834,285 treasury shares. In addition to the treasury shares, a maximum of 196,835,440 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders.

Comprehensive income (unaudited)
			in			% change				in		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Comprehensive income (CHF million)
Net income	1,329	1,302	4,673	2	< /td>	(72)		8,549		11,327		(25)
Other comprehensive income/(loss), net of tax	151	(1,110)	(34)	–		–		(677)		(1,349)		(50)
Comprehensive income	1,480	192	4,639	–	(68)		7,872		9,978		(21)

Selected Notes to the Condensed Consolidated Financial Statements – unaudited

Net interest income

< td align="right">24

			in			% change				in		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Net interest income (CHF million)
Loans	2,508	2,321	2,029	8			9,007		7,509		20
Investment securities	180	187	190	(4)	< /font>	(5)		743		696		7
Trading assets	5,389	5,657	4,300	(5)		25		22,986		17,659		30
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	5,366	5,860	4,927	(8)		9		22,471		19,141		17
Other	1,778	2,005	1,571	(11)		13		7,355		5,264		40
Interest and dividend income	15,221	16,030	13,017	(5)		17		62,562		50,269		24
Deposits	(3,844)	(4,215)	(3,559)	(9)		8		(15,931)		(12,396)		29
Short-term borrowings	(211)	(256)	(193)	(18)		9		(971)		(630)		54
Trading liabilities	(1,809)	(2,069)	(1,498)	(13)	< sup>	21		(8,665)		(6,606)		31
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	(5,341)	(5,524)	(4,644)	(3)		15		(21,132)		(17,878)		18
Long-term debt	(1,097)	(1,192)	(1,168)	(8)		(6)		(4,736)		(4,471)		6
Other	(763)	(815)	(528)	(6)		45		(2,674)		(1,722)		55
Interest expense	(13,065)	(14,071)	(11,590)	(7)		13		(54,109)		(43,703)		24
Net interest income	2,156	1,959	1,427	10		51		8,453		6,566		29

Commissions and fees

			in			% change		in	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Commissions and fees (CHF million)
Lending business	352	394	469	(11)		(25)	2,054	1,602	28
Investment and portfolio management	1,717	1,549	1,387	11		24	6,221	5,241	19
Other securities business	52	62	58	(16)		(10)	231	212	9
Fiduciary	1,769	1,611	1,445	10	< /td>	22	6,452	5,453	18
Underwriting	374	104	895	260		(58)	1,810	2,755	(34)
Brokerage	1,491	1,441	1,303	3		14	5,848	5,129	14
Underwriting and brokerage	1,865	1,545	2,198	21		(15)	7,658	7,884	(3)
Other customer services	893	681	957	31		(7)	3,165	2,708	17
Commissions and fees	4,879	4,231	5,069	15		(4)	19,329	17,647	10

Other revenues

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Other revenues (CHF million)
Minority interests without significant economic interest	1,659	741	978	124	70	4,674	3,559	31
Loans held-for-sale	(286)	(339)	(7)	(16)	–	(638)	31	–
Long-lived assets held-for-sale	34	10	15	240	127	59	22	168
Equity method investments	47	97	61	(52)	(23)	196	124	58
Other investments	349	178	253	96	38	1,049	916	15
Other	118	123	62	(4)	90	465	310	50
Other revenues	1,921	810	1,362	137	41	5,805	4,962	17

Provision for credit losses

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Provision for credit losses (CHF million)
Allowance for loan losses	5	(9)	(25)	–	–	40	(128)	–
Provisions for lending-related and other exposures	198	13	5	–	–	200	17	–
Provision for credit losses	203	4	(20)	–	–	240	(111)	–

Compensation and benefits

			in			% change		in	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Compensation and benefits (CHF million)
Salaries and bonuses	3,117	2,037	3,650	53		(15)	14,504	14,005	4
Social security	163	141	239	16	< /td>	(32)	876	892	(2)
Other	188	214	211	(12)		(11)	839	800	5
Compensation and benefits	3,468	2,392	4,100	45		(15)	16,219	15,697	3

General and administrative expenses

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
General and administrative expenses (CHF million)
Occupancy expenses	238	231	233	3	2	911	888	3
IT, machinery, etc.	148	127	133	17	11	519	525	(1)
Provisions and losses	74	19	58	289	28	115	(199)	–
Travel and entertainment	183	153	152	20	20	628	632	(1)
Professional services	745	606	624	23	19	2,383	2,219	7
Depreciation of property and equipment	238	205	224	16	6	859	831	3
Amortization and impairment of other intangible assets	13	7	19	86	(32)	36	183	(80)
Other	383	395	372	(3)	3	1,465	1,366	7
General and administrative expenses	2,022	1,743	1,815	16	11	6,916	6,445	7

Segment reporting

The Group is a global financial services company domiciled in Switzerland. The Group’s business consists of three segments: Investment Banking, Private Banking and Asset Management. The three segments are complemented by Shared Services, which provides support in the areas of finance, operations, including human resources, legal and compliance, risk management and information technology.

The segment information reflects the Group’s reportable segments as follows:

– Investment Banking offers investment banking and securities products and services to corporate, institutional and government clients around the world. Its products and services include debt and equity underwriting, sales and trading, mergers and acquisitions advice, divestitures, corporate sales, restructuring and investment research.

– Private Banking offers comprehensive advice and a broad range of wealth management solutions, including pension planning, life insurance products, tax planning and wealth and inheritance advice, which are tailored to the needs of high-net-worth individuals worldwide. In Switzerland, it supplies banking products and services to high-net-worth, corporate and retail clients.

– Asset Management offers integrated investment solutions and services to institutions, governments and private clients globally. It provides access to the full range of investment classes, ranging from money market, fixed income, equities and balanced products, to alternative investments such as real estate, hedge funds, private equity and volatility management.

Corporate Center includes parent company operations such as Group financing, expenses for projects sponsored by the Group and certain expenses that have not been allocated to the segments. In addition, Corporate Center includes consolidation and elimination adjustments required to eliminate intercompany revenues and expenses.

Minority interest-related revenues and expenses resulting from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such revenues and expenses are reported as minorities without significant economic interest. The consolidation of these entities does not affect net income as the amounts recorded in net revenues and total operating expenses are offset by corresponding amounts reported as minority interests. In addition, our income tax expense is not affected by these revenues and expenses.

Earnings per share

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Net income (CHF million)
Income from continuing operations before extraordinary items	1,329	1,302	2,599	2	(49)	8,549	8,281	3
Income from discontinued operations, net of tax	0	0	2,074	–	(100)	0	3,070	(100)
Extraordinary items, net of tax	0	0	0	–	–	0	(24)	100
Net income	1,329	1,302	4,673	2	(72)	8,549	11,327	(25)
Net income available for common shares for basic earnings per share	1,329	1,302	4,673	2	(72)	8,549	11,327	(25)
Net income available for common shares for diluted earnings per share	1,329	1,302	4,673	2	(72)	8,549	11,327	(25)
Weighted-average shares outstanding (million)
Weighted-average shares outstanding for basic earnings per share	1,019.2	1,029.2	1,074.6	(1)	(5)	1,044.6	1,099.9	(5)
Dilutive share options and warrants	7.4	8.2	12.8	(10)	(42)	10.4	14.2	(27)
Dilutive share awards	72.6	70.1	47.9	4	52	61.8	38.2	62
Weighted-average shares outstanding for diluted earnings per share1	1,099.2	1,107.5	1,135.3	(1)	(3)	1,116.8	1,152.3	(3)
Basic earnings per share (CHF)									< /td>
Income from continuing operations before extraordinary items	1.30	1.27	2.42	2	(46)	8.18	7.53	9
Income from discontinued operations, net of tax	0.00	0.00	1.93	–	(100)	0.00	2.79	(100)
Extraordinary items, net of tax	0.00	0.00	0.00	–	–	0.00	(0.02)	100
Net income	1.30	1.27	4.35	2	(70)	8.18	10.30	(21)
Diluted earnings per share (CHF)
Income from continuing operations before extraordinary items	1.21	1.18	2.29	3	(47)	7.65	7.19	6
Income from discontinued operations, net of tax	0.00	0.00	1.83	–	(100)	0.00	2.66	(100)
Extraordinary items, net of tax	0.00	0.00	0.00	–	–	0.00	(0.02)	100
Net income	1.21	1.18	4.12	3	(71)	7.65	9.83	(22)
1    Weighted-average potential common shares relating to instruments that were not dilutive for the respective periods (and therefore not included in the diluted earnings per share calculation above) but could potentially dilute earnings per share in the future were 46.3 million, 38.9 million, 35.2 million, 31.2 million and 38.0 million for 4Q07, 3Q07, 4Q06, 2007 and 2006, respectively.

Investor Information

This section contains information on our share listing in Switzerland and the US. Bond ratings and foreign currency translation rates are also provided.

Investor Information

Ticker symbols / stock exchange listings
	Common shares	ADS	1
Ticker symbols
Bloomberg	CSGN VX	CS US
Reuters	CSGN.VX	CS.N
Telekurs	CSGN,380	CS,065
Stock exchange listings
Swiss security number	1213853	570660
ISIN number	CH0012138530	US2254011081
CUSIP number	–	225 401 108
1    One American Depositary Share (ADS) represents one common share.

Bond ratings
	Moody's	Standard & Poor's	Fitch Ratings
Credit Suisse Group ratings
Short-term	–	A-1	F1+
Long-term	Aa2	A+	AA-
Outlook	Stable	Stable	Stable
Credit Suisse (the Bank) ratings
Short-term	P-1	A-1+	F1+
Long-term	Aa1	AA-	AA-
Outlook	Stable	Stable	Stable

Share data
					in / end of
	2007		2006	2005	2004
Share price (common shares, CHF)
Average	83.02		73.13	54.19	43.90
Minimum	61.90		62.70	46.85	37.35
Maximum	95.45		85.35	68.50	49.50
End of period	68.10		85.25	67.00	47.80	< /font>
Share price (American Depository Shares, USD)
Average	68.97		58.46	43.40	30.04
Minimum	55.93		50.07	38.75	35.44
Maximum	79.03		70.00	52.91	42.50
End of period	60.10		69.85	50.95	42.19	< /font>
Market capitalization
Market capitalization (CHF million)	76,024		86,576	81,847	58,025
Market capitalization (USD million)	67,093		74,290	62,241	51,215
Dividend per share (CHF)
Dividend per share paid	2.50	1	2.24	2.00	1.50
Par value reduction	–		0.46	–	–	< sup>
1    Proposal of the Board of Directors to the Annual General Meeting on April 25, 2008.

Financial calendar and information sources

Financial calendar
First quarter 2008 results	Thursday, April 24, 2008
Annual General Meeting	Friday, April 25, 2008
Investor relations
Phone	+41 44 333 71 49
E-mail	investor.relations@credit-suisse.com
Internet	www.credit-suisse.com/investors
Media relations
Phone	+41 844 33 88 44
E-mail	media.relations@credit-suisse.com
Internet	www.credit-suisse.com/news
Additional information
Results and financial information	www.credit-suisse.com/results
Printed copies	Credit Suisse
	Procurement Non-IT Switzerland
	RSCP 1 Publikationenversand
	CH-8070 Zurich, Switzerland

US share register and transfer agent
ADS depositary institution	Deutsche Bank Trust Company Americas
	Broker Service Desk
Address	Credit Suisse
	c/o Mellon Investor Services
	P.O. Box 3316
	So. Hackensack, NJ 07606
	United States
US and Canada phone (toll free)	+1 800 301 35 17
Phone from outside US and Canada	+1 201 680 66 26
E-mail	shrrelations@mellon.com
Swiss share register and transfer agent
Address	Credit Suisse Group
	Dept. GHBS
	CH-8070 Zurich
	Switzerland
Phone	+41 44 332 26 60
Fax	+41 44 332 98 96

Foreign currency translation rates
			in / end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Average rate
1 USD / 1 CHF	1.15	1.20	1.23	(4)		(7)
1 EUR / 1 CHF	1.66	1.65	1.59	1	< /td>	4
1 GBP / 1 CHF	2.34	2.43	2.37	(4)		(1)
100 JPY / 1 CHF	1.01	1.02	1.05	(1)		(4)
Closing rate
1 USD / 1 CHF	1.13	1.17	1.22	(3)		(7)
1 EUR / 1 CHF	1.66	1.66	1.61	0	< /td>	3
1 GBP / 1 CHF	2.25	2.38	2.40	(5)		(6)
100 JPY / 1 CHF	1.00	1.02	1.03	(2)		(3)

Cautionary statement regarding forward-looking information

This report contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:

– our plans, objectives or goals;

– our future economic performance or prospects;

– the potential effect on our future performance of certain contingencies; and

– assumptions underlying any such statements.

Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable securities laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include:

– the ability to maintain sufficient liquidity and access capital markets;

– market and interest rate fluctuations;

– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular;

– the ability of counterparties to meet their obligations to us;

– the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations;

– political and social developments, including war, civil unrest or terrorist activity;

– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;

– operational factors such as systems failure, human error, or the failure to implement procedures properly;

– actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations;

– the effects of changes in laws, regulations or accounting policies or practices;

– competition in geographic and business areas in which we conduct our operations;

– the ability to retain and recruit qualified personnel;

– the ability to maintain our reputation and promote our brand;

– the ability to increase market share and control expenses;

– technological changes;

– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;

– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets;

– the adverse resolution of litigation and other contingencies; and

– our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the information set forth in our Form 20-F Item 3 – Key Information – Risk Factors.

Personalities

Angeline Aw

Corporate finance, Investment Banking

2007 – One Raffles Link, Singapore

Angeline Aw works in corporate finance in the Investment Banking division based in Singapore. She is responsible for structuring and executing various corporate finance transactions across Southeast Asia, including debt and equity underwriting, mergers and acquisitions, structured products as well as other innovative deals that create new opportunities for Credit Suisse’s major clients.

Angeline Aw was photographed at the Credit Suisse office at One Raffles Quay in Singapore, which was designed by Kohn Pedersen Fox. The complex is located in the central business district of Singapore and was completed in the third quarter of 2006. The building consists of two office towers and incorporates a retail mall which is linked to the Raffles Place MRT Station.

Clinton Yang

Prime services, Investment Banking

2007 – Three Exchange Square, Hong Kong

Clinton Yang works in the Prime Services team in the Investment Banking division based in Hong Kong. Clinton has responsibility for sales coverage and the hedge fund services offering. He also manages the Hong Kong capital services team, which introduces prime services’ hedge fund clients to potential investors.

Clinton Yang was photographed at the Credit Suisse office at Three Exchange Square, in Hong Kong’s Central District. Three Exchange Square was completed in 1988 and, as the name suggests, is also the home of the Hong Kong Stock Exchange. The building was designed by P&T Architects.

Photography: Hans Schürmann, Zurich; Design: www.arnolddesign.ch; Production: Management Digital Data AG, Zurich; Printer: NZZ Fretz AG, Zurich

EX-99

Condensed Consolidated Financial Statements – unaudited
Notes to the Condensed Consolidated Financial Statements – unaudited
Note 1 Summary of significant accounting policies
Note 2 Business developments
Note 3 Segment reporting
Note 4 Net interest income
Note 5 Commissions and fees
Note 6 Other revenues
Note 7 Provision for credit losses
Note 8 Compensation and benefits
Note 9 General and administrative expenses
Note 10 Earnings per share
Note 11 Trading assets and liabilities
Note 12 Loans
Note 13 Other assets and liabilities
Note 14 Long-term debt
Note 15 Accumulated other comprehensive income
Note 16 Tax
Note 17 Employee share-based compensation and other benefits
Note 18 Pension
Note 19 Guarantees and commitments
Note 20 Variable interest entities
Note 21 Fair value of financial instruments
Note 22 Subsidiary guarantee information
Note 23 Litigation

For purposes of this report, unless the context otherwise requires, the terms “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group and its consolidated subsidiaries and the term “the Bank” means Credit Suisse, the Swiss bank subsidiary of the Group, and its consolidated subsidiaries.

The accompanying notes to the unaudited condensed consolidated financial statements are an integral part of these statements.

Condensed Consolidated Financial Statements – unaudited

< td width="3" height="16">

Consolidated statements of income (unaudited)
			in			% change				in		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Consolidated statements of income (CHF million)
Interest and dividend income	15,221	16,030	13,017	(5)		17		62,562		50,269		24
Interest expense	(13,065)	(14,071)	(11,590)	(7)		13		(54,109)		(43,703)		24
Net interest income	2,156	1,959	1,427	10		51		8,453		6,566		29
Commissions and fees	4,879	4,231	5,069	15		(4)		19,329		17,647		10
Trading revenues	457	(158)	2,956	–		(85)		7,325		9,428		(22)
Other revenues	1,921	810	1,362	137		41		5,805		4,962		17
Net revenues	9,413	6,842	10,814	38		(13)		40,912		38,603		6
Provision for credit losses	203	4	(20)	–		–		240		(111)		–
Compensation and benefits	3,468	2,392	4,100	45		(15)		16,219		15,697		3
General and administrative expenses	2,022	1,743	1,815	16		11		6,916		6,445		7
Commission expenses	694	667	605	4		15		2,612		2,272		15
Total other operating expenses	2,716	2,410	2,420	13		12		9,528		8,717		9
Total operating expenses	6,184	4,802	6,520	29	(5)		25,747		24,414		5
Income from continuing operations before taxes, minority interests and extraordinary items	3,026	2,036	4,314	49		(30)		14,925		14,300		4
Income tax expense	(15)	(32)	805	(53)	< /font>	–		1,638		2,389		(31)
Minority interests	1,712	766	910	123		88		4,738		3,630		31
Income from continuing operations before extraordinary items	1,329	1,302	2,599	2		(49)		8,549		8,281		3
Income from discontinued operations, net of tax	0	0	2,074	–		(100)		0		3,070		(100)
Extraordinary items, net of tax	0	0	0	–		–		0		(24)		100
Net income	1,329	1,302	4,673	2		(72)		8,549		11,327		(25)
Basic earnings per share (CHF)
Income from continuing operations before extraordinary items	1.30	1.27	2.42	2		(46)		8.18		7.53		9
Income from discontinued operations, net of tax	0.00	0.00	1.93	–		(100)		0.00		2.79		(100)
Extraordinary items, net of tax	0.00	0.00	0.00	–		–		0.00		(0.02)		100
Net income	1.30	1.27	4.35	2		(70)		8.18		10.30		(21)
Diluted earnings per share (CHF)
Income from continuing operations before extraordinary items	1.21	1.18	2.29	3		(47)		7.65		7.19		6
Income from discontinued operations, net of tax	0.00	0.00	1.83	–		(100)		0.00		2.66		(100)
Extraordinary items, net of tax	0.00	0.00	0.00	–		–		0.00		(0.02)		100
Net income	1.21	1.18	4.12	3		(71)		7.65		9.83		(22)

Consolidated balance sheets (unaudited)
			end of		% change
	4Q07	3Q07	4Q06	QoQ	YoY
Assets (CHF million)
Cash and due from banks	38,459	37,854	29,040	2	32
Interest-bearing deposits with banks	3,759	3,319	8,128	13	(54)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	296,709	324,323	319,048	(9)	(7)
of which reported at fair value	183,719	171,345	–	7	–
Securities received as collateral, at fair value	28,314	19,647	32,385	44	(13)
Trading assets, at fair value	533,247	531,100	450,780	0	18
of which encumbered	141,963	138,089	141,404	3	0
Investment securities	15,731	15,767	21,394	0	(26)
of which reported at fair value	15,453	15,489	20,622	0	(25)
of which encumbered	1,908	7,651	54	(75)	–
Other investments	28,120	26,916	20,478	4	37
of which reported at fair value	25,195	22,968	17,887	10	41
Net loans	240,534	226,959	208,127	6	16
of which reported at fair value	31,047	22,345	–	39	–
allowance for loan losses	1,234	1,316	1,484	(6)	(17)
Premises and equipment	6,149	6,144	5,990	0	3
Goodwill	10,882	10,677	11,023	2	(1)
Other intangible assets	444	507	476	(12)	(7)
of which reported at fair value	179	202	181	(11)	(1)
Other assets	159,370	173,229	149,087	(8)	7
of which reported at fair value	49,326	51,539	11,265	(4)	338
of which encumbered	12,084	19,002	26,426	(36)	(54)
Total assets	1,361,718	1,376,442	1,255,956	( 1)	8

< td align="right">(92)

Consolidated balance sheets (unaudited)
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Liabilities and shareholders' equity (CHF million)
Due to banks	90,864	101,294	97,514	(10)		(7)
of which reported at fair value	6,047	4,612	–	31		–
Customer deposits	335,505	334,467	290,864	0	< /sup>	15
of which reported at fair value	6,134	6,679	–	(8)		–
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	300,381	302,638	288,444	(1)		4
of which reported at fair value	140,424	145,220	–	(3)		–
Obligation to return securities received as collateral, at fair value	28,314	19,647	32,385	44		(13)
Trading liabilities, at fair value	201,809	224,412	198,422	(10)		2
Short-term borrowings	19,390	21,908	21,556	(11)		(10)
of which reported at fair value	8,120	9,919	2,764	(18)		194
Long-term debt	160,157	162,797	147,832	(2)		8
of which reported at fair value	111,293	113,989	44,709	(2)		149
Other liabilities	164,678	152,117	120,035	8	< /sup>	37
of which reported at fair value	24,233	32,047	14,916	(24)		62
Minority interests	16,640	15,197	15,318	9		9
Total liabilities	1,317,738	1,334,477	1,212,370	(1)		9
Common shares	46	46	607	0
Additional paid-in capital	24,553	24,010	24,817	2		(1)
Retained earnings	34,459	33,127	32,306	4		7
Treasury shares, at cost	(9,378)	(9,367)	(9,111)	0		3
Accumulated other comprehensive income/(loss)	(5,700)	(5,851)	(5,033)	(3)		13
Total shareholders' equity	43,980	41,965	43,586	5		1
Total liabilities and shareholders' equity	1,361,718	1,376,442	1,255,956	(1)		8

			end of		% change
	4Q07	3Q07	4Q06	QoQ	YoY
Additional share information
Par value (CHF)	0.04	0.04	0.50	0	(92)
Authorized shares (million)	1,359.3	1,359.5	1,413.3	0	(4)
Issued shares (million)	1,162.4	1,162.2	1,214.9	0	(4)
Repurchased shares (million)	(141.8)	(141.6)	(152.4)	0	(7)
Shares outstanding (million)	1,020.6	1,020.6	1,062.5	0	(4)

Consolidated statements of changes in shareholders' equity (unaudited)
	Common shares	Additional paid-in capital	Retained earnings	Treasury shares, at cost	Accumu- lated other comprehen- sive income	Total share- holders' equity		Number of common shares outstanding
2007 (CHF million)
Balance at beginning of period	607	24,817	32,306	(9,111)	(5,033)	43,586		1,062,467,061	1
Net income	–	–	8,549	–	–	8,549		–
Cumulative effect of accounting changes, net of tax	–	–	(829)	–	10	(819)	2	–
Other comprehensive income/(loss), net of tax	–	–	–	–	(677)	(677)		–
Issuance of common shares	1	59	–	–	–	60		1,389,127
Cancellation of repurchased shares3	(27)	(945)	(3,087)	4,059	–	0		–
Issuance of treasury shares	–	4	–	36,274	–	36,278		441,949,359
Repurchase of treasury shares	–	–	–	(41,879)	–	(41,879)		(507,256,244)	4
Share-based compensation, net of tax	–	861	–	1,279	–	2,140		22,078,552
Derivatives indexed to own shares5	–	(279)	–	–	–	(279)		–
Repayment out of share capital6	(535)	36	–	–	–	(499)		–
Cash dividends paid	–	–	(2,480)	–	–	(2,480)		–
Balance at end of period	46	24,553	34,459	(9,378)	(5,700)	43,980		1,020,627,855	7
2006 (CHF million)
Balance at beginning of period	624	24,639	24,584	(5,823)	(1,906)	42,118		1,125,360,183
Net income	–	–	11,327	–	–	11,327		–
Cumulative effect of accounting changes, net of tax	–	–	41	–	(1,778)	(1,737)		–
Other comprehensive income/(loss), net of tax	–	–	–	–	(1,349)	(1,349)		–
Issuance of common shares	–	48	–	–	–	48		1,109,847
Cancellation of repurchased shares	(17)	(608)	(1,316)	1,941	–	0		–
Issuance of treasury shares	–	(67)	–	17,352	–	17,285		238,906,412
Repurchase of treasury shares	–	–	–	(23,461)	–	(23,461)		(323,036,898)
Share-based compensation, net of tax	–	805	–	880	–	1,685		20,127,517
Cash dividends paid	–	–	(2,330)	–	–	(2,330)		–
Balance at end of period	607	24,817	32,306	(9,111)	(5,033)	43,586		1,062,467,061
1    At par value CHF 0.50 each, fully paid, net of 152,394,952 treasury shares. In addition to the treasury shares, a maximum of 198,476,240 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders.      2    Includes CHF 187 million related to SFAS 157, CHF (1,003) million related to SFAS 159, CHF (13) million related to FIN 48 and CHF 10 million reclassified from accumulated other comprehensive income as a result of SFAS 159, all net of tax.      3    53,789,000 treasury shares were cancelled in 3Q07.      4    Includes 57,459,000 shares repurchased in connection with Credit Suisse Group's share buyback programs.      5    The Group has p urchased certain call options on its own shares to economically hedge all or a portion of the Leverage Units element of the Incentive Share Units (ISU) granted to the employees during 1Q07 and 4Q07. In accordance with EITF 00-19, these call options are designated as equity instruments and, as such, are initially recognized in shareholders' equity at their fair values and not subsequently remeasured.      6    On May 4, 2007, the shareholders of Credit Suisse Group approved a par value reduction of CHF 0.46 per share, in addition to a dividend, which was paid out on July 18, 2007.      7    At par value CHF 0.04 each, fully paid, net of 141,834,285 treasury shares. In addition to the treasury shares, a maximum of 196,835,440 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders.

Comprehensive income (unaudited)
			in			% change				in		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Comprehensive income (CHF million)
Net income	1,329	1,302	4,673	2	< /td>	(72)		8,549		11,327		(25)
Gains/(losses) on cash flow hedges	(23)	(6)	(22)	283		5		(38)		(119)		(68)
Cumulative translation adjustments	(943)	(1,125)	173	(16)		–		(1,791)		(381)		370
Unrealized gains/(losses) on securities	14	(10)	(378)	–		–		(2)		(1,042)		(100)
Minimum pension liability adjustment	0	0	193	–		(100)		0		193		(100)
Actuarial gains/losses	1,098	24	0	–		–		1,168		0		–
Net prior service cost/credit	5	7	0	(29)		–		(14)		0		–
Other comprehensive income/(loss), net of tax	151	(1,110)	(34)	–		–		(677)		(1,349)		(50)
Comprehensive income	1,480	192	4,639	–	(68)		7,872		9,978		(21)

Consolidated statements of cash flows (unaudited)
		in	% change
	2007	2006	YoY
Operating activities of continuing operations (CHF million)
Net income	8,549	11,327	(25)
(Income)/loss from discontinued operations, net of tax	0	(3,070)	100
Income from continuing operations	8,549	8,257	4
Adjustments to reconcile net income to net cash provided by/(used in) operating activities of continuing operations (CHF million)
Impairment, depreciation and amortization	894	1,029	(13)
Provision for credit losses	240	(111)	–
Deferred tax provision	(887)	646	–
Share of net income from equity method investments	(101)	(24)	321
Trading assets and liabilities	(66,890)	(26,113)	156
(Increase)/decrease in accrued interest, fees receivable and other assets	(64,327)	(61,793)	4
Increase/(decrease) in accrued expenses and other liabilities	61,197	28,561	114
Other, net	3,434	1,003	242
Total adjustments	(66,440)	(56,802)	17
Net cash provided by/(used in) operating activities of continuing operations	(57,891)	(48,545)	19
Investing activities of continuing operations (CHF million)
(Increase)/decrease in interest-bearing deposits with banks	4,059	(2,580)	–
(Increase)/decrease in central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	3,436	8,931	(62)
Purchase of investment securities	(928)	(2,980)	(69)
Proceeds from sale of investment securities	2,905	1,256	131
Maturities of investment securities	3,769	5,035	(25)
Investments in subsidiaries and other investments	(7,626)	(6,209)	23
Proceeds from sale of other investments	2,288	2,100	9
(Increase)/decrease in loans	(35,472)	(23,159)	53
Proceeds from sales of loans	339	3,142	(89)
Capital expenditures for premises and equipment and other intangible assets	(1,550)	(1,530)	1
Proceeds from sale of premises and equipment and other intangible assets	250	34	–
Other, net	46	(86)	–
Net cash provided by/(used in) investing activities of continuing operations	(28,484)	(16,046)	78

Consolidated statements of cash flows (unaudited) (continued)
		in	% change
	2007	2006	YoY
Financing activities of continuing operations (CHF million)
Increase/(decrease) in due to banks and customer deposits	52,510	38,533	36
Increase/(decrease) in short-term borrowings	(517)	3,091	–
Increase/(decrease) in central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	30,493	(1,416)	–
Issuances of long-term debt	81,151	75,921	7
Repayments of long-term debt	(65,306)	(51,295)	27
Issuances of common shares	60	48	25
Issuances of treasury shares	36,278	17,285	110
Repurchase of treasury shares	(41,879)	(23,461)	79
Dividends paid/capital repayments	(2,512)	(2,346)	7
Other, net	6,857	2,703	154
Net cash provided by/(used in) financing activities of continuing operations	97,135	59,063	64
Effect of exchange rate changes on cash and due from banks (CHF million)
Effect of exchange rate changes on cash and due from banks	(1,341)	(515)	160
Net cash provided by/(used in) discontinued operations (CHF million)
Net cash provided by/(used in) operating activities of discontinued operations	0	(38)	100
Net cash provided by/(used in) investing activities of discontinued operations	0	(4,424)	100
Net cash provided by/(used in) financing activities of discontinued operations	0	(332)	100
Net cash provided by/(used in) discontinued operations	0	(4,794)	100
Proceeds from sale of stock by subsidiaries (CHF million)
Proceeds from sale of stock by subsidiaries	0	12,300	(100)
Net increase/(decrease) in cash and due from banks (CHF million)
Net increase/(decrease) in cash and due from banks	9,419	1,463	–
Cash and due from banks at beginning of period	29,040	27,577	5
Cash and due from banks at end of period	38,459	29,040	32

Supplemental cash flow information (unaudited)
		in	% change
	2007	2006	YoY
Cash paid for income taxes and interest (CHF million)
Cash paid for income taxes	2,673	1,774	51
Cash paid for interest	53,756	42,519	26
Assets acquired and liabilities assumed in business acquisitions (CHF million)
Fair value of assets acquired	335	199	68
Fair value of liabilities assumed	300	199	51
Assets and liabilities sold in business divestitures
Assets sold	0	183,691	(100)
Liabilities sold	0	174,694	(100)

Notes to the Condensed Consolidated Financial Statements – unaudited

Note 1 Summary of significant accounting policies

Basis of presentation

The accompanying unaudited Condensed consolidated financial statements of Credit Suisse Group (the Group) are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and are stated in Swiss francs (CHF). These Condensed consolidated financial statements should be read in conjunction with the US GAAP Consolidated financial statements and notes thereto for the year ended December 31, 2006, included in the Credit Suisse Group Annual Report 2006. For a description of the Group’s significant accounting policies, refer to “Note 1 – Summary of significant accounting policies in the Notes to the consolidated financial statements” of the aforementioned Consolidated financial statements.

Due to the Group’s sale of Winterthur, which was completed on December 22, 2006, the results of operations of the Winterthur businesses sold, which were previously reported as a separate segment of the Group, are reflected in income from discontinued operations, net of tax in the Consolidated statements of income for all periods presented through the completion of the sale.

Certain financial information, which is normally included in annual Consolidated financial statements prepared in accordance with US GAAP but not required for interim reporting purposes, has been condensed or omitted. Certain reclassifications have been made to the prior period’s Consolidated financial statements to conform to the current period’s presentation. These Condensed consolidated financial statements reflect, in the opinion of management, all adjustments that are necessary for a fair presentation of the Condensed consolidated financial statements for the periods presented. The presentation of period over period change and the 3Q07 Consolidated statement of income and Consolidated balance sheet have been added for convenience of the reader and are not a required presentation under US GAAP.

In preparing these Condensed consolidated financial statements, management is required to make estimates and assumptions, which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently adopted accounting standards

The following provides the most relevant recently adopted accounting standards. For a complete description of recently adopted accounting standards, refer to “Note 2 – Recently issued accounting standards in the Notes to the consolidated financial statements” in the Credit Suisse Group Annual Report 2006.

EITF 04-5, FSP SOP 78-9-1 and EITF 96-16

In June 2005, the Financial Accounting Standards Board (FASB) ratified Emerging Issues Task Force (EITF) Issue No. 04-5, “Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights” (EITF 04-5). EITF 04-5 provides a framework for evaluating whether a general partner or a group of general partners controls a limited partnership and therefore should consolidate it. EITF 04-5 states that the presumption of general partner control would be overcome only when the limited partners have substantive “kick-out rights” or “participating rights.” These rights would allow a simple majority of the limited partners to dissolve or liquidate the partnership or otherwise remove the general partner “without cause” or effectively participate in significant decisions made in the ordinar y course of the partnership business. EITF 04-5 was effective upon ratification for all newly formed limited partnerships and for existing limited partnership agreements that have been modified. The guidance was effective for the Group with respect to existing unmodified partnerships as of January 1, 2006.

As a result of the ratification of EITF 04-5, EITF Issue No. 96-16, “Investor’s Accounting for an Investee When the Investor Has a Majority of the Voting Interest but the Minority Shareholder or Shareholders Have Certain Approval or Veto Rights” (EITF 96-16) was updated and FASB Staff Position (FSP) No. Statement of Position (SOP) 78-9-1, “Interaction of AICPA Statement of Position 78-9 and EITF Issue No. 04-5” (FSP SOP 78-9-1) was issued. The amendments to EITF 96-16 were effective on a prospective basis upon issuance, whereas, similar to EITF 04-5, FSP SOP 78-9-1 was effective upon issuance for all new partnerships formed and for existing partnership agreements modified after June 29, 2005, and was effective for the Group with respect to existing unmodified partnerships as of January 1, 2006.

The changes to EITF 96-16 and the provisions of EITF 04-5 and FSP SOP 78-9-1 in effect during 2005 did not have a material impact on the Group’s financial condition, results of operations or cash flows. As of January 1, 2006, the Group increased its assets and liabilities by CHF 8.2 billion, primarily due to the consolidation of certain unmodified private equity partnerships which existed prior to June 29, 2005.

SFAS 155

In February 2006, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 155, “Accounting for Certain Hybrid Financial Instruments – an amendment of FASB Statements No. 133 and 140” (SFAS 155). Under SFAS 155, hybrid financial instruments which contain embedded derivatives that would otherwise require bifurcation may be accounted for at fair value, with changes in fair value recognized in the Consolidated statements of income. The fair value designation may be applied on an instrument-by-instrument basis; however, the election to apply fair value accounting is irrevocable. SFAS 155 is effective for those instruments acquired or issued on or after an entity’s fiscal year beginning after September 15, 2006, with early adoption permitted as of the beginning of a fiscal year for which an entity has not previously issued interim financial statements. SFAS 155 allows limited retrospective application for existing bifurcated hybrid financial instruments. The Group elected to early adopt SFAS 155 as of January 1, 2006, and the impact of adoption was an increase to the Group’s consolidated retained earnings of CHF 33 million, which included gross gains after tax of CHF 119 million and gross losses after tax of CHF 86 million, and a corresponding decrease to the Group’s consolidated liabilities of CHF 33 million.

FIN 48

In July 2006, the FASB issued FASB Interpretation (FIN) No. 48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109” (FIN 48). FIN 48 addresses the accounting for uncertainty in income tax positions by prescribing a consistent recognition threshold and measurement attribute for income tax positions taken or expected to be taken in an income tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

FIN 48 requires a two-step process in evaluating income tax positions. In the first step, an enterprise determines whether it is more likely than not that an income tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Income tax positions meeting the more-likely-than-not recognition threshold are then measured to determine the amount of benefit eligible for recognition in the financial statements. Each income tax position is measured at the largest amount of benefit that is more likely than not to be realized upon ultimate settlement.

The provisions of FIN 48 are effective for fiscal years beginning after December 15, 2006. The adoption of FIN 48 as of January 1, 2007, resulted in a decrease in beginning retained earnings of CHF 13 million. For further information on uncertainty in income tax positions, refer to “Note 16 – Tax.”

SFAS 158

In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106 and 132(R)” (SFAS 158). SFAS 158 requires an employer to:

(i) recognize in the statement of financial condition the funded status of a defined benefit plan on a prospective basis;

(ii) recognize as a component of other comprehensive income, net of tax, the actuarial gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost pursuant to SFAS No. 87, “Employers’ Accounting for Pensions” (SFAS 87) or No. 106, “Employers’ Accounting for Postretirement Benefits Other than Pensions” (SFAS 106). Amounts recognized in accumulated other comprehensive income (AOCI), including gains or losses, prior service costs or credits and transition assets or obligations remaining from the initial application of SFAS 87 and SFAS 106, are to be adjusted as they are subsequently recognized as a component of net periodic benefit cost;

(iii) measure the defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end statement of financial condition; and

(iv) disclose in the notes to the financial statements additional information about certain effects on net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits and transition asset or obligation.

SFAS 158 recognition provisions associated with the funded status of a defined benefit plan was effective as of the end of the fiscal year ending after December 15, 2006. The provision to measure plan assets and benefit obligations as of the date of the employer’s fiscal year-end statement of financial condition is effective for fiscal years ending after December 15, 2008, with early adoption permitted.

The cumulative effect of the Group adopting the recognition provisions of SFAS 158 as of December 31, 2006, was an after-tax decrease in AOCI and consolidated net assets of CHF 1.8 billion. The Group did not early adopt the measurement date provisions and is evaluating the impact of those provisions for adoption in 2008.

SFAS 157

In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (SFAS 157). SFAS 157 establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures for instruments carried at fair value. The statement applies only to fair value measurements which are already required or permitted by other accounting standards. It eliminates the EITF Issue No. 02-3 “Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities” (EITF 02-3) guidance which prohibits the recognition of gains or losses at the inception of derivative transactions whose fair value is estimated based upon unobservable market data. SFAS 157 also eliminates the use of blockage factors on instruments that are quoted in active markets by brokers, dealers and invest ment companies that have been applying the applicable American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guides. SFAS 157 also requires the Group to consider its own credit spreads when measuring the fair value of liabilities. The Group adopted the provisions of SFAS 157 on January 1, 2007. As a result of this adoption, the Group reported an increase in opening retained earnings of CHF 187 million, net of tax. For further information on fair values, refer to “Note 21 – Fair value of financial instruments.”

SFAS 159

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of FASB Statement No. 115” (SFAS 159). SFAS 159 creates an alternative measurement treatment for certain financial assets and financial liabilities that permits fair value to be used for initial and subsequent measurement with changes in fair value recognized in earnings. The availability of this alternative measurement treatment is referred to as the fair value option. The statement also provides for additional financial statement presentation and disclosures relating to the alternative measurement treatment. The Group adopted the provisions of SFAS 159 on January 1, 2007. As a result of adoption and election of certain existing instruments under the fair value option, the Group reported a decrease in opening retained earnings of CHF 1,003 million, net of tax. For further information on fair values, refer to “Note 21 – Fair value of financial instruments.”

Standards to be adopted in future periods

FSP FIN 39-1

In April 2007, the FASB issued FSP No. FIN 39-1, “Amendment of FASB Interpretation No. 39” (FSP FIN 39-1). FSP FIN 39-1 permits a reporting entity that is a party to a master netting agreement to offset fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against fair value amounts recognized for derivative instruments that have been offset under the same master netting agreement. FSP FIN 39-1 is effective for fiscal years beginning after November 15, 2007. FSP FIN 39-1 is required to be applied retrospectively for all financial statements presented unless it is impracticable to do so. As part of the Group’s implementation procedures for adopting FSP FIN 39-1, it was determined that adopting FSP FIN 39-1 retrospectively is impracticable as it would require undue time and effort. Based on this, the Group will be adopting FSP FIN 39-1 on a prospe ctive basis.

EITF 06-11

In June 2007, the FASB ratified EITF Issue No. 06-11, “Accounting for Income Tax Benefits of Dividends on Share-Based Payment Awards” (EITF 06-11). EITF 06-11 consensus addresses share-based payment arrangements where employees receive dividends on awards during the vesting period. EITF 06-11 confirmed that a realized income tax benefit from dividends or dividend equivalents that are charged to retained earnings and are paid to employees for equity classified non-vested equity shares, non-vested equity share units and outstanding equity share options should be recognized as an increase to additional paid-in capital. The amount recognized in additional paid-in capital for the realized income tax benefit from dividends in those awards should be included in the pool of excess tax benefits available to absorb tax deficiencies on share-based payment awards.

EITF 06-11 is effective prospectively to income tax benefits that result from dividends on equity classified employee share-based payment awards that are declared in fiscal years beginning after December 15, 2007. The Group does not anticipate that the adoption of EITF 06-11 will have a material impact on the Group’s financial condition, results of operation or cash flows.

SAB 109

In November 2007, the United States (US) Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 109, “Written Loan Commitments Recorded at Fair Value Through Earnings” (SAB 109). SAB 109 provides guidance that the expected net future cash flows related to the associated servicing of the loan should be included in the measurement of all written loan commitments that are accounted at fair value through earnings.

SAB 109 retains the view that internally-developed intangible assets should not be recorded as part of the fair value of a derivative loan commitment and broadens this view to all written loan commitments that are accounted for at fair value through earnings

The guidance of SAB 109 is effective on a prospective basis for derivative loan commitments issued or modified in fiscal quarters beginning after December 15, 2007. The Group does not anticipate that the adoption of SAB 109 will have a material impact on the Group’s financial condition, results of operation or cash flows.

SFAS 141(R)

In December 2007, the FASB issued SFAS No. 141 (Revised 2007), “Business Combinations” (SFAS 141(R)). SFAS 141(R) requires an acquiring entity to recognize all assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, at their fair values as of that date.

SFAS 141(R) also requires substantial new disclosures and will change the accounting treatment for the recognition of acquisition costs, restructuring costs and in-process research and development as well as the recognition and subsequent measurement of acquired contingent liabilities.

The guidance in SFAS 141(R) is effective on a prospective basis for business combinations in which the acquisition date is on or after the first annual reporting period beginning on or after December 15, 2008. The Group is currently evaluating the impact of adopting SFAS 141(R).

SFAS 160

In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements - an amendment of ARB No. 51” (SFAS 160). SFAS 160 amends Accounting Research Bulletin (ARB) No. 51 to establish accounting and reporting standards for a noncontrolling interest in a subsidiary and for deconsolidation of a subsidiary.

SFAS 160 requires the recognition of a noncontrolling interest as equity in the consolidated financial statements and separate from the parent’s equity. In addition, net income attributable to the noncontrolling interest must be included in consolidated net income on the face of the income statement. SFAS 160 clarifies that changes in a parent’s ownership interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. SFAS 160 has additional disclosure requirements that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners.

SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. The Group is currently evaluating the impact of adopting SFAS 160.

Note 2 Business developments

Acquisitions

In 4Q07, the Group completed its acquisition of a majority interest in Hedging-Griffo, a leading asset management and private banking company in Brazil, for CHF 421 million.

Divestitures

Effective December 22, 2006, the Group sold Winterthur to AXA S.A. for cash consideration of CHF 12.3 billion. As part of the sale agreement, AXA S.A. repaid approximately CHF 1.1 billion of debt outstanding between the Group and Winterthur. As a result of the completed sale, a net capital gain on the sale of CHF 1,817 million was recognized. The Group did not provide any indemnification in respect of Winterthur’s insurance reserves in the sale agreement.

The results of operations of the businesses sold are reflected in income from discontinued operations, net of tax in the Consolidated statements of income for all periods presented through the completion of the sale.

In 4Q06 and 2006, income from discontinued operations, net of tax was CHF 2,074 million and CHF 3,070 million, respectively. Included in these numbers is a net capital gain on the sale of CHF 1,817 million.

Note 3 Segment reporting

Overview

The Group is a global financial services company domiciled in Switzerland. The Group’s business consists of three segments: Investment Banking, Private Banking and Asset Management. The three segments are complemented by Shared Services, which provides support in the areas of finance, operations, including human resources, legal and compliance, risk management and information technology.

The segment information reflects the Group’s reportable segments as follows:

– Investment Banking offers investment banking and securities products and services to corporate, institutional and government clients around the world. Its products and services include debt and equity underwriting, sales and trading, mergers and acquisitions advice, divestitures, corporate sales, restructuring and investment research.

– Private Banking offers comprehensive advice and a broad range of wealth management solutions, including pension planning, life insurance products, tax planning and wealth and inheritance advice, which are tailored to the needs of high-net-worth individuals worldwide. In Switzerland, it supplies banking products and services to high-net-worth, corporate and retail clients.

– Asset Management offers integrated investment solutions and services to institutions, governments and private clients globally. It provides access to the full range of investment classes, ranging from money market, fixed income, equities and balanced products, to alternative investments such as real estate, hedge funds, private equity and volatility management.

Corporate Center includes parent company operations such as Group financing, expenses for projects sponsored by the Group and certain expenses that have not been allocated to the segments. In addition, Corporate Center includes consolidation and elimination adjustments required to eliminate intercompany revenues and expenses.

Minority interest-related revenues and expenses resulting from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such revenues and expenses are reported as minorities without significant economic interest. The consolidation of these entities does not affect net income as the amounts recorded in net revenues and total operating expenses are offset by corresponding amounts reported as minority interests. In addition, our tax expense is not affected by these revenues and expenses.

Revenue sharing and cost allocation

Responsibility for each product is allocated to a segment, which records all related revenues and expenses. Revenue-sharing and service level agreements govern the compensation received by one segment for generating revenue or providing services on behalf of another. These agreements are negotiated periodically by the relevant segments on a product-by-product basis.

The aim of revenue-sharing and cost allocation agreements is to reflect the pricing structure of unrelated third-party transactions.

Corporate services and business support in finance, operations, including human resources, legal and compliance, risk management and information technology are provided by the Shared Services area. Shared Services costs are allocated to the segments and Corporate Center based on their requirements and other relevant measures.

Funding

Credit Suisse centrally manages its funding activities. New securities for funding and capital purposes are issued primarily by the Bank. The Bank lends funds to its operating subsidiaries and affiliates on both a senior and subordinated basis, as needed, the latter typically to meet capital requirements, or as desired by management to capitalize on opportunities. Capital is distributed to the segments considering factors such as regulatory capital requirements, utilized economic capital and the historic and future potential return on capital. Transfer pricing, using market rates, is used to record interest income and expense in each of the segments for this capital and funding. Included in this allocation are gains and losses recorded on the fair value of Credit Suisse own debt.

Taxes

The Group’s segments are managed and reported on a pre-tax basis.

Net revenues and income from continuing operations before taxes
			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Net revenues (CHF million)
Investment Banking	3,918	2,097	6,085	87	(36)	20,135	20,469	(2)
Private Banking	3,478	3,325	2,973	5	17	13,522	11,678	16
Asset Management	354	594	738	(40)	(52)	2,577	2,861	(10)
Corporate Center	(12)	4	20	–	–	(104)	(68)	53
Minority interests without significant economic interest	1,675	822	998	104	68	4,782	3,663	31
Net revenues	9,413	6,842	10,814	38	(13)	40,912	38,603	6
Income from continuing operations before taxes, minority interests and extraordinary items (CHF million)
Investment Banking	328	6	2,342	–	(86)	4,826	5,951	(19)
Private Banking	1,377	1,289	1,143	7	20	5,486	4,596	19
Asset Management	(247)	45	89	–	–	354	508	(30)
Corporate Center	(78)	(57)	(187)	37	(58)	(341)	(315)	8
Minority interests without significant economic interest	1,646	753	927	119	78	4,600	3,560	29
Income from continuing operations before taxes, minority interests and extraordinary items	3,026	2,036	4,314	49	(30)	14,925	14,300	4

Total assets
			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Total assets (CHF million)
Investment Banking	1,141,778	1,156,573	1,046,557	(1)		9
Private Banking	376,800	370,724	340,741	2		11
Asset Management	27,784	32,457	20,448	(14)		36
Corporate Center	(201,947)	(198,677)	(167,794)	2	< sup>	20
Minority interests without significant economic interest	17,303	15,365	16,004	13		8
Total assets	1,361,718	1,376,442	1,255,956	(1)		8

Note 4 Net interest income

< td align="right">24

			in			% change				in		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Net interest income (CHF million)
Loans	2,508	2,321	2,029	8			9,007		7,509		20
Investment securities	180	187	190	(4)	< /font>	(5)		743		696		7
Trading assets	5,389	5,657	4,300	(5)		25		22,986		17,659		30
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	5,366	5,860	4,927	(8)		9		22,471		19,141		17
Other	1,778	2,005	1,571	(11)		13		7,355		5,264		40
Interest and dividend income	15,221	16,030	13,017	(5)		17		62,562		50,269		24
Deposits	(3,844)	(4,215)	(3,559)	(9)		8		(15,931)		(12,396)		29
Short-term borrowings	(211)	(256)	(193)	(18)		9		(971)		(630)		54
Trading liabilities	(1,809)	(2,069)	(1,498)	(13)	< sup>	21		(8,665)		(6,606)		31
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	(5,341)	(5,524)	(4,644)	(3)		15		(21,132)		(17,878)		18
Long-term debt	(1,097)	(1,192)	(1,168)	(8)		(6)		(4,736)		(4,471)		6
Other	(763)	(815)	(528)	(6)		45		(2,674)		(1,722)		55
Interest expense	(13,065)	(14,071)	(11,590)	(7)		13		(54,109)		(43,703)		24
Net interest income	2,156	1,959	1,427	10		51		8,453		6,566		29

Note 5 Commissions and fees

			in			% change		in	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Commissions and fees (CHF million)
Lending business	352	394	469	(11)		(25)	2,054	1,602	28
Investment and portfolio management	1,717	1,549	1,387	11		24	6,221	5,241	19
Other securities business	52	62	58	(16)		(10)	231	212	9
Fiduciary	1,769	1,611	1,445	10	< /td>	22	6,452	5,453	18
Underwriting	374	104	895	260		(58)	1,810	2,755	(34)
Brokerage	1,491	1,441	1,303	3		14	5,848	5,129	14
Underwriting and brokerage	1,865	1,545	2,198	21		(15)	7,658	7,884	(3)
Other customer services	893	681	957	31		(7)	3,165	2,708	17
Commissions and fees	4,879	4,231	5,069	15		(4)	19,329	17,647	10

Note 6 Other revenues

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Other revenues (CHF million)
Minority interests without significant economic interest	1,659	741	978	124	70	4,674	3,559	31
Loans held-for-sale	(286)	(339)	(7)	(16)	–	(638)	31	–
Long-lived assets held-for-sale	34	10	15	240	127	59	22	168
Equity method investments	47	97	61	(52)	(23)	196	124	58
Other investments	349	178	253	96	38	1,049	916	15
Other	118	123	62	(4)	90	465	310	50
Other revenues	1,921	810	1,362	137	41	5,805	4,962	17

Note 7 Provision for credit losses

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Provision for credit losses (CHF million)
Allowance for loan losses	5	(9)	(25)	–	–	40	(128)	–
Provisions for lending-related and other exposures	198	13	5	–	–	200	17	–
Provision for credit losses	203	4	(20)	–	–	240	(111)	–

Note 8 Compensation and benefits

			in			% change		in	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Compensation and benefits (CHF million)
Salaries and bonuses	3,117	2,037	3,650	53		(15)	14,504	14,005	4
Social security	163	141	239	16	< /td>	(32)	876	892	(2)
Other	188	214	211	(12)		(11)	839	800	5
Compensation and benefits	3,468	2,392	4,100	45		(15)	16,219	15,697	3

Note 9 General and administrative expenses

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
General and administrative expenses (CHF million)
Occupancy expenses	238	231	233	3	2	911	888	3
IT, machinery, etc.	148	127	133	17	11	519	525	(1)
Provisions and losses	74	19	58	289	28	115	(199)	–
Travel and entertainment	183	153	152	20	20	628	632	(1)
Professional services	745	606	624	23	19	2,383	2,219	7
Depreciation of property and equipment	238	205	224	16	6	859	831	3
Amortization and impairment of other intangible assets	13	7	19	86	(32)	36	183	(80)
Other	383	395	372	(3)	3	1,465	1,366	7
General and administrative expenses	2,022	1,743	1,815	16	11	6,916	6,445	7

Note 10 Earnings per share

			in		% change		in	% change
	4Q07	3Q07	4Q06	QoQ	YoY	2007	2006	YoY
Net income (CHF million)
Income from continuing operations before extraordinary items	1,329	1,302	2,599	2	(49)	8,549	8,281	3
Income from discontinued operations, net of tax	0	0	2,074	–	(100)	0	3,070	(100)
Extraordinary items, net of tax	0	0	0	–	–	0	(24)	100
Net income	1,329	1,302	4,673	2	(72)	8,549	11,327	(25)
Net income available for common shares for basic earnings per share	1,329	1,302	4,673	2	(72)	8,549	11,327	(25)
Net income available for common shares for diluted earnings per share	1,329	1,302	4,673	2	(72)	8,549	11,327	(25)
Weighted-average shares outstanding (million)
Weighted-average shares outstanding for basic earnings per share	1,019.2	1,029.2	1,074.6	(1)	(5)	1,044.6	1,099.9	(5)
Dilutive share options and warrants	7.4	8.2	12.8	(10)	(42)	10.4	14.2	(27)
Dilutive share awards	72.6	70.1	47.9	4	52	61.8	38.2	62
Weighted-average shares outstanding for diluted earnings per share1	1,099.2	1,107.5	1,135.3	(1)	(3)	1,116.8	1,152.3	(3)
Basic earnings per share (CHF)									< /td>
Income from continuing operations before extraordinary items	1.30	1.27	2.42	2	(46)	8.18	7.53	9
Income from discontinued operations, net of tax	0.00	0.00	1.93	–	(100)	0.00	2.79	(100)
Extraordinary items, net of tax	0.00	0.00	0.00	–	–	0.00	(0.02)	100
Net income	1.30	1.27	4.35	2	(70)	8.18	10.30	(21)
Diluted earnings per share (CHF)
Income from continuing operations before extraordinary items	1.21	1.18	2.29	3	(47)	7.65	7.19	6
Income from discontinued operations, net of tax	0.00	0.00	1.83	–	(100)	0.00	2.66	(100)
Extraordinary items, net of tax	0.00	0.00	0.00	–	–	0.00	(0.02)	100
Net income	1.21	1.18	4.12	3	(71)	7.65	9.83	(22)
1    Weighted-average potential common shares relating to instruments that were not dilutive for the respective periods (and therefore not included in the diluted earnings per share calculation above) but could potentially dilute earnings per share in the future were 46.3 million, 38.9 million, 35.2 million, 31.2 million and 38.0 million for 4Q07, 3Q07, 4Q06, 2007 and 2006, respectively.

Note 11 Trading assets and liabilities

			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Trading assets (CHF million)
Debt securities	209,917	221,390	214,276	(5)	< /sup>	(2)
Equity securities1	195,243	196,551	149,684	(1)		30
Derivative instruments	98,645	85,183	58,152	16		70
Other	29,442	27,976	28,668	5		3
Trading assets	533,247	531,100	450,780	0		18
Trading liabilities (CHF million)
Short positions	122,720	148,453	139,786	(17)		(12)
Derivative instruments	79,089	75,959	58,636	4		35
Trading liabilities	201,809	224,412	198,422	(10)		2
1    Including convertible bonds.

Note 12 Loans

			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Loans (CHF million)
Banks	1	7	24	(86)		(96)
Commercial	45,351	44,185	43,618	3		4
Consumer	86,220	86,664	82,768	(1)		4
Public authorities	1,283	1,476	1,263	(13)		2
Lease financings	3,263	3,309	3,360	(1)		(3)
Switzerland	136,118	135,641	131,033	0	< /font>	4
Banks	10,609	9,588	8,940	11		19
Commercial	71,846	59,616	50,935	21		41
Consumer	21,508	21,840	17,562	(2)		22
Public authorities	1,592	1,479	905	8		76
Lease financings	115	118	228	(3)		(50)
Foreign	105,670	92,641	78,570	14		34
Gross loans	241,788	228,282	209,603	6		15
Net (unearned income)/deferred expenses	(20)	(7)	8	186		–
Allowance for loan losses	(1,234)	(1,316)	(1,484)	(6)		(17)
Net loans	240,534	226,959	208,127	6		16
Impaired loan portfolio (CHF million)
Gross impaired loans	1,946	1,802	2,131	8		(9)
of which with a specific allowance	1,563	1,580	1,802	(1)		(13)
of which without a specific allowance	383	222	329	73		16

(71)

			in			% change				in		% change
	4Q07	3Q07	4Q06	QoQ		YoY		2007		2006		YoY
Allowance for loan losses (CHF million)
Balance at beginning of period	1,316	1,372	1,527	(4)		(14)		1,484		2,241		(34)	< /sup>
Change in accounting1	0	0	0	–		–		(61)		0		–
Discontinued operations	0	0	0	–	< /font>	–		0		(51)		100
Net additions charged to statements of income	5	(9)	(25)	–		–		40		(128)		–
Gross write-offs	(94)	(60)	(76)	57		24		(295)		(731)		(60)
Recoveries	20	29	68	(31)			93		141		(34)
Net write-offs	(74)	(31)	(8)	139		–		(202)		(590)		(66)
Provisions for interest	1	1	(1)	0		–		1		48		(98)
Foreign currency translation impact and other adjustments, net	(14)	(17)	(9)	(18)		56		(28)		(36)		(22)
Balance at end of period	1,234	1,316	1,484	(6)		(17)		1,234		1,484		(17)	< /font>
of which a specific allowance	850	899	1,091	(5)		(22)		850		1,091		(22)
of which an inherent credit loss allowance	384	417	393	(8)		(2)		384		393		(2)
1    Related to the adoption of SFAS 159.

Note 13 Other assets and liabilities

			end of			% change
	4Q07	3Q07	4Q06	QoQ		YoY
Other assets (CHF million)
Cash collateral on derivative instruments	18,766	17,223	14,917	9		26
Derivative instruments used for hedging	1,065	971	2,220	10		(52)
Brokerage receivables	54,883	60,074	49,223	(9)		11
Assets held-for-sale	48,206	60,058	53,346	(20)		(10)
of which loans	47,975	59,770	53,178	(20)		(10)
of which real estate	231	288	168	(20)		38
Interest and fees receivable	10,808	10,633	8,817	2		23
Deferred tax assets	5,678	5,896	5,317	(4)		7
Prepaid expenses	565	622	477	(9)		18
Other	19,399	17,752	14,770	9		31
Other assets	159,370	173,229	149,087	(8)		7
Other liabilities (CHF million)
Cash collateral on derivative instruments	49,307	38,261	22,855	29		116
Derivative instruments used for hedging	84	296	970	(72)		(91)
Brokerage payables	55,808	51,898	33,185	8		68
Provisions1	2,279	1,865	2,104	22		8
of which off-balance sheet risk	268	70	140	283		91
Restructuring liabilities	2	2	3	0		(33)
Interest and fees payable	11,829	12,989	12,300	(9)		(4)
Current and deferred tax liabilities	4,385	4,410	3,750	(1)		17
Failed sales	10,627	9,884	18,384	8		(42)
Other	30,357	32,512	26,484	(7)	< /td>	15
Other liabilities	164,678	152,117	120,035	8		37
1    Includes provisions for bridge commitments.

Note 14 Long-term debt

			end of		% change
	4Q07	3Q07	4Q06	QoQ	YoY
Long-term debt (CHF million)
Senior	141,675	144,843	129,919	(2)	9
Subordinated	18,482	17,954	17,913	3	3
Long-term debt	160,157	162,797	147,832	(2)	8

Note 15 Accumulated other comprehensive income

	Gains/ (losses) on cash flow hedges	Cumulative translation adjustments	Unrealized gains/ (losses) on securities	Minimum pension liability adjustment	Actuarial gains/ (losses)	Net prior service cost/ (credit)	Accumu- lated other comprehen- sive income
2007 (CHF million)
Balance at beginning of period	(42)	(2,878)	114	0	(2,110)	(117)	(5,033)
Increase/(decrease)	8	(1,791)	9	0	1,075	(39)	(738)
Decrease due to equity method investments	(41)	0	0	0	0	0	(41)
Reclassification adjustments, included in net income	(5)	0	(11)	0	93	25	102
Adoption of SFAS 159, net of tax	6	0	4	0	0	0	10
Balance at end of period	(74)	(4,669)	116	0	(942)	(131)	(5,700)
2006 (CHF million)
Balance at beginning of period	77	(2,497)	1,156	(642)	0	0	(1,906)
Increase/(decrease)	(115)	(832)	(528)	101	0	0	(1,374)
Decrease due to equity method investments	(40)	0	0	0	0	0	(40)
Reclassification adjustments, included in net income	36	451	(514)	92	0	0	65
Adoption of SFAS 158, net of tax	0	0	0	449	(2,110)	(117)	(1,778)
Balance at end of period	(42)	(2,878)	114	0	(2,110)	(117)	(5,033)

Note 16 Tax

Credit Suisse adopted the provisions of FIN 48 on January 1, 2007. As a result of FIN 48, an increase in the liability for unrecognized tax benefits of approximately CHF 13 million was recognized as a reduction to the January 1, 2007 balance of retained earnings. The total amount of unrecognized tax benefits, as of January 1, 2007, was CHF 1,485 million.

Included in the January 1, 2007 balance were tax positions of CHF 16 million, for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. On January 1, 2007, the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was CHF 1,412 million.

Credit Suisse continues to recognize interest and penalties accrued relating to unrecognized tax benefits as current income taxes in income tax expense. Approximately CHF 298 million was accrued as of January 1, 2007 for the payment of interest and penalties, net of any tax benefit associated with the payment of these amounts.

Credit Suisse remains open to examination from either federal, state, provincial or similar local jurisdictions from the following years onward in these major countries: Japan – 2005; Switzerland – 2004; the United Kingdom –1997; and the US – 1993.

The reduction in the tax rate was due to a 4Q07-specific net credit of CHF 83 million from the re-measurement of uncertain tax positions. The remaining favorable variance to our originally accrued tax rate of 22% was due to normal business-driven tax related items. The former was recorded in accordance with FIN 48. The latter included non-taxable income, the streamlining of certain legal entity structures and the geographic mix of pre-tax income, which was partially offset by an increase in the valuation allowance on deferred tax assets of CHF 527 million attributable to the lower business results in certain entities.

Note 17 Employee share-based compensation and other benefits

Share-based compensation

The Group’s share-based compensation is an important part of the overall compensation package for select employees and senior executives. Share-based compensation is designed to promote employee retention and align the interests of employees and shareholders. The majority of share-based compensation is granted as part of the annual incentive performance bonus subsequent to the fiscal year to which the incentive performance bonus relates. Share-based compensation is generally subject to restrictive features such as vesting, forfeiture and blocking rules. For further information on share-based compensation plans and the related fair value assumptions, refer to “Note 24 – Employee share-based compensation and other benefits in the Notes to the consolidated financial statements” in the Credit Suisse Group Annual Report 2006.

Compensation expense

Compensation expense in any year includes a variable compensation expense for that year’s discretionary cash performance bonus and fixed expenses for share-based awards granted in prior years. Recognition in the Consolidated statements of income of expense relating to awards granted in prior years is dependent primarily upon the vesting period, which is determined by the plan, retirement eligibility of employees, moratorium periods and certain other terms.

Total compensation expense for share-based compensation recognized in the Consolidated statements of income in compensation and benefits was CHF 2,661 million and CHF 1,646 million in 2007 and 2006, respectively. As of December 31, 2007, the total estimated unrecognized compensation expense related to non-vested share-based compensation of CHF 2,365 million will be recognized over the remaining weighted-average requisite service period of 1.3 years.

The Group generally repurchases its own shares in the open market to satisfy these obligations but can also issue new shares out of available conditional capital. Through December 31, 2007, the Group delivered approximately 22.1 million shares to employees.

Credit Suisse Incentive Share Unit

In January 2007, as part of the 2006 remuneration process, the Group aligned its share-based compensation plans and introduced ISUs. Previously granted awards will continue to settle under their original terms and are not affected by the ISU. An ISU is a unit that is similar to shares, but offers additional upside depending on the development of the Credit Suisse Group share price. For each ISU granted, the employee will receive at least one Credit Suisse Group share. In addition, the leverage component can deliver additional upside, which will be determined by the monthly average Credit Suisse Group share price over the three-year period following the grant. Each ISU will vest at a rate of one-third of a share per year over three years, with the potential additional shares vesting on the third anniversary of the grant date, depending on the development of the leverage component.

The compensation expense recognized in 2007 related to ISUs was CHF 1,159 million. The estimated unrecognized compensation expense related to ISUs as of December 31, 2007 was CHF 1,530 million. None of the ISUs were vested as of December 31, 2007.

Incentive Share Unit activities
in 2007	ISU
Number of share unit awards (million)
Balance at beginning of period	0.0
Granted	27.2
Settled	(0.4)
Forfeited	(1.4)
Balance at end of period	25.4

Performance Incentive Plan

As part of its annual incentive performance bonus process for 2004 and 2005, the Group granted Performance Incentive Plan (PIP) units during 2005 (PIP I) and 2006 (PIP II), respectively. PIP units are long-term retention incentive awards requiring continued employment with the Group, subject to restrictive covenants and cancellation provisions, and vest evenly over a five-year period. Each PIP unit will settle for a specified number of Credit Suisse Group registered shares subsequent to the fifth anniversary of the grant date based on the achievement of: i) earnings performance as compared to predefined targets; and ii) share price performance compared to predefined targets and share price performance relative to peers.

The compensation expense recognized in 2007 related to PIP I and PIP II was CHF 451 million. The estimated unrecognized compensation expense related to PIP I and PIP II as of December 31, 2007 was CHF 269 million. None of the PIP units were deliverable as of December 31, 2007.

Performance Incentive Plan activities
in 2007	PIP II	PIP I
Number of share unit awards (million)
Balance at beginning of period	6.3	12.4
Granted	0.4	0.0
Settled	0.0	0.0
Forfeited	(0.2)	(0.1)
Balance at end of period	6.5	12.3
of which vested	1.7	5.6
of which unvested	4.8	6.7

Shares

In addition to the PIP, the Group’s share-based compensation in prior years has included three different types of share awards: phantom shares; Longevity Premium Awards (LPA); and special awards. These share awards entitle the holder to receive one Credit Suisse Group registered share subject to continued employment with the Group, restrictive covenants and cancellation provisions and generally vest between zero and three years.

The compensation expense recognized in 2007 related to shares awarded under phantom share, LPA and special awards was CHF 1,051 million. The estimated unrecognized compensation expense related to these awards as of December 31, 2007 was CHF 566 million.

Share options

Options were a substantial component of the Group’s share-based program prior to 2004. The Group has discontinued the practice of issuing options and the majority of the original grants have since vested. Share options were granted with an exercise price equal to the market price of Credit Suisse Group’s shares on the date of grant and expire after ten years.

Note 18 Pension

The calculation of the expected contribution for 2007 was revised in 2Q07, resulting in an increase in anticipated annual contributions. As of December 31, 2007, CHF 755 million of contributions have been made, including approximately CHF 340 million as a special contribution in 2007. The Group expects to contribute CHF 574 million to the defined benefit plans and to other post-retirement defined benefit plans in 2008.

			in			% change		in	% change
	4Q07	3Q07	4Q06	QoQ		YoY	2007	2006	YoY
Total pension costs (CHF million)
Service costs on benefit obligation	74	80	86	(8)	< sup>	(14)	314	335	(6)
Interest costs on benefit obligation	139	138	124	1		12	555	494	12
Expected return on plan assets	(182)	(184)	(175)	(1)		4	(734)	(692)	6
Amortization of recognized transition obligation/(asset)	0	0	0	–		–	0	(1)	100
Amortization of prior service cost	8	8	7	0		14	33	31	6
Amortization of recognized (gains)/losses	36	33	33	9		9	133	130	2
Net periodic pension costs	75	75	75	0		0	301	297	1
Settlement (gains)/losses	0	0	0	–		–	0	(5)	100
Curtailment (gains)/losses	0	0	0	–		–	0	(9)	100
Total pension costs	75	75	75	0		0	301	283	6

Note 19 Guarantees and commitments

Guarantees
end of	Total gross amount	Total net amount	1	Carrying value	Collateral received
4Q07 (CHF million)
Credit guarantees and similar instruments	9,469	8,083		23	5,396
Performance guarantees and similar instruments	12,552	10,802		141	3,588
Securities lending indemnifications	40,006	40,006		0	40,006
Derivatives	1,130,724	1,130,724		38,866	–	2
Other guarantees	4,233	4,198		3	1,862
Total guarantees	1,196,984	1,193,813		39,033	50,852
4Q06 (CHF million)
Credit guarantees and similar instruments	10,308	7,909		8	4,966
Performance guarantees and similar instruments	11,131	9,925		162	3,145
Securities lending indemnifications	36,834	36,834		0	36,834
Derivatives	680,329	680,329		5,211	–	2
Other guarantees	3,511	3,511		3	1,496
Total guarantees	742,113	738,508		5,384	46,441
1    Total net amount is computed as the gross amount less any participations.      2    Collateral for derivatives accounted for as guarantees is not considered significant.

Guarantees provided by the Group are broadly classified as follows: credit guarantees and similar instruments, performance guarantees and similar instruments, securities lending indemnifications, derivatives and other guarantees. For a detailed description of guarantees, refer to “Note 28 – Guarantees and commitments in the Notes to the consolidated financial statements” in the Credit Suisse Group Annual Report 2006.

Deposit-taking banks in Switzerland and certain other European countries are required to ensure the payout of privileged deposits in case of specified restrictions or compulsory liquidation of a deposit-taking bank. Upon occurrence of a payout event, the Group’s contribution will be calculated based on its share of privileged deposits in proportion to total privileged deposits. These deposit insurance guarantees are reflected in other guarantees in the table above. The Group believes that the likelihood of having to pay under these agreements is remote.

Disposal-related contingencies and other indemnifications

The Group has certain guarantees for which its maximum contingent liability cannot be quantified. These guarantees are not reflected in the table above and are discussed below.

Disposal-related contingencies

In connection with the sale of assets or businesses, the Group sometimes provides the acquirer with certain indemnification provisions. These indemnification provisions vary by counterparty in scope and duration and depend upon the type of assets or businesses sold. These indemnification provisions generally shift the potential risk of certain unquantifiable and unknowable loss contingencies (e.g., relating to litigation, tax and intellectual property matters) from the acquirer to the seller. The Group closely monitors all such contractual agreements in order to ensure that indemnification provisions are adequately provided for in the Group’s Consolidated financial statements.

Other indemnifications

The Group provides indemnifications to certain counterparties in connection with its normal operating activities, for which it is not possible to estimate the maximum amount that it could be obligated to pay. As a normal part of issuing its own securities, the Group typically agrees to reimburse holders for additional tax-withholding charges or assessments resulting from changes in applicable tax laws or the interpretation of those laws. Securities that include these agreements to pay additional amounts generally also include a related redemption or call provision if the obligation to pay the additional amounts results from a change in law or its interpretation and the obligation cannot be avoided by the issuer taking reasonable steps to avoid the payment of additional amounts. Since such potential obligations are dependent on future changes in tax laws, the related liabilities the Group may incur as a result of such chang es cannot be reasonably estimated. In light of the related call provisions typically included, the Group does not expect any potential liabilities in respect of tax gross-ups to be material.

The Group is a member of numerous securities exchanges and clearing houses and may, as a result of its membership arrangements, be required to perform if another member defaults. The Group has determined that it is not possible to estimate the maximum amount of these obligations and believes that any potential requirement to make payments under these arrangements is remote.

Other commitments
end of	Total gross amount	Total net amount	1	Collateral received
4Q07 (CHF million)
Irrevocable commitments under documentary credits	5,970	5,240		2,448
Loan commitments	249,025	248,773		171,735
Forward reverse repurchase agreements	40,403	40,403		40,403
Other commitments	4,885	4,885		347
Total other commitments	300,283	299,301		214,933
4Q06 (CHF million)
Irrevocable commitments under documentary credits	5,365	4,984		2,710
Loan commitments	233,083	231,771		139,189
Forward reverse repurchase agreements	5,697	5,697		5,697
Other commitments	4,966	4,966		159
Total other commitments	249,111	247,418		147,755
1    Total net amount is computed as the gross amount less any participations.

Other commitments of the Group are broadly classified as follows: irrevocable commitments under documentary credits, loan commitments, forward reverse repurchase agreements and other commitments. For a detailed description of off-balance sheet commitments, refer to “Note 28 – Guarantees and commitments in the Notes to the consolidated financial statements” in the Credit Suisse Group Annual Report 2006.

Note 20 Variable interest entities

FIN 46(R) requires the Group to consolidate all variable interest entities (VIE) for which it is the primary beneficiary, defined as the entity that will absorb a majority of expected losses, receive a majority of the expected residual returns, or both. The Group consolidates all VIEs for which it is the primary beneficiary. Net income was unaffected, as offsetting minority interests were recorded in the Consolidated statements of income.

As a normal part of its business, the Group engages in transactions with entities that are considered VIEs. These transactions include selling or purchasing assets, acting as a counterparty in derivative transactions and providing liquidity, credit or other support. Transactions with VIEs are generally executed to facilitate securitization activities or to meet specific client needs, such as providing liquidity or investment opportunities, and as part of these activities, the Group may retain interests in VIEs. In general, investors in consolidated VIEs do not have recourse to the Group in the event of a default, except where a guarantee was provided to the investors or where the Group is the counterparty to a derivative transaction involving VIEs.

The Group’s involvement with VIEs may be broadly grouped into three primary categories: collateralized debt obligations (CDO), commercial paper (CP) conduits and financial intermediation. For further information on the Group’s policy on consolidation of VIEs and the nature of the Group’s involvement with these entities, refer to “Note 1 - Summary of significant accounting policies, Note 2 - Recently issued accounting standards and Note 29 - Transfers and servicing of financial assets in the Notes to the consolidated financial statements” in the Credit Suisse Group Annual Report 2006.

		end of	% change
	4Q07	4Q06	YoY
Total assets of consolidated VIEs (CHF million)
Collateralized debt obligations	6,672	6,539	2
Commercial paper conduits	1	1	0
Financial intermediation	17,404	15,006	16
Total assets of consolidated VIEs	24,077	21,546	12
Total assets of non-consolidated VIEs (CHF million)
Collateralized debt obligations	16,489	15,636	5
Commercial paper conduits	12,642	7,038	80
Financial intermediation	99,244	90,538	10
Total assets of non-consolidated VIEs	128,375	113,212	13

Collateralized debt obligations

As part of its structured finance business, the Group purchases loans and other debt obligations from and on behalf of clients for the purpose of securitization.

The Group has consolidated all CDO VIEs for which it is the primary beneficiary, resulting in the inclusion by the Group of approximately CHF 6.7 billion and CHF 6.5 billion of assets and liabilities of these VIEs as of December 31, 2007 and December 31, 2006, respectively. The beneficial interests issued by these VIEs are payable solely from the cash flows of the related collateral, and the creditors of these VIEs do not have recourse to the Group in the event of default.

The Group also retains certain debt and equity interests in open CDO VIEs that are not consolidated because the Group is not the primary beneficiary. The Group’s exposure in these CDO transactions typically consists of the interests retained in connection with its underwriting or market-making activities. The Group’s maximum loss exposure is generally equal to the carrying value of these retained interests, which are reported as trading assets and carried at fair value and totaled CHF 2.6 billion and CHF 1.7 billion as of December 31, 2007 and December 31, 2006, respectively.

Commercial paper conduits

The Group continues to act as the administrator and provider of liquidity and credit enhancement facilities for several CP conduits. The Group does not sell assets to the CP conduits and does not have any ownership interest in the CP conduits. The Group’s commitments to CP conduits consist of obligations under liquidity and credit enhancement agreements.

As of December 31, 2007, the Group’s maximum loss exposure to non-consolidated CP conduits was CHF 17.4 billion, which consisted of CHF 12.5 billion of funded assets and the CP conduits’ commitments to purchase CHF 4.9 billion of additional assets for which the Group provided liquidity arrangements. As of December 31, 2006, the Group’s maximum loss exposure was CHF 12.5 billion.

The Group believes that the likelihood of incurring a loss equal to this maximum exposure is remote because the assets held by the CP conduits, after giving effect to related asset-specific credit enhancement primarily provided by the clients, must be classified as investment grade when acquired by the CP conduits.

Financial intermediation

The Group has significant involvement with VIEs in its role as a financial intermediary on behalf of clients. The investors typically retain the risk of loss on such transactions, but the Group may provide principal protection on the securities to limit the investors’ exposure to downside risk.

As a financial intermediary, the Group may administer or sponsor the VIE, transfer assets to the VIE, provide collateralized financing, act as a derivatives counterparty, advise on the transaction, act as investment advisor or investment manager, act as underwriter or placement agent or provide credit enhancement, liquidity or other support to the VIE. The Group also owns securities issued by the VIEs structured to provide clients with investment opportunities, for market-making purposes and as investments. The Group’s maximum loss exposure to non-consolidated VIEs related to financial intermediation activities was CHF 20.5 billion and CHF 19.1 billion as of December 31, 2007 and December 31, 2006, respectively, which represents the notional amount of any off-balance sheet arrangements from the Group and the carrying value of on-balance sheet interests held by the Group, rather than the amount of total assets of the VIEs. Further, the Group considers the likelihood of incurring a loss equal to the maximum exposure to be remote because of the Group’s risk mitigation efforts, including hedging strategies, and the risk of loss that is retained by investors.

Note 21 Fair value of financial instruments

The fair value of the majority of the Group’s financial instruments is based on quoted prices in active markets or observable inputs. These instruments include government and agency securities, commercial paper, most investment-grade corporate debt, most high-yield debt securities, exchange-traded and certain over-the-counter (OTC) derivative instruments, most CDOs, most mortgage-backed and asset-backed securities, certain residential mortgage whole loans and listed equity securities.

In addition, the Group holds financial instruments for which no prices are available and which have little or no observable inputs. For these instruments, the determination of fair value requires subjective assessment and varying degrees of judgment depending on liquidity, concentration, pricing assumptions and the risks affecting the specific instrument. In such circumstances, valuation is determined based on management’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These instruments include certain high-yield debt securities, distressed debt securities, certain CDOs, certain OTC derivatives, certain mortgage-backed and asset-backed securities, non-traded equity securities, private equity and other long-term investments. Valuation techniques for certain of these instruments are described in greater detail below.

The Group has availed itself of the simplification in accounting offered under the fair value option, primarily in the Investment Banking and Asset Management segments. This has been accomplished generally by electing the fair value option, both at initial adoption and for subsequent transactions, on items impacted by the hedge accounting requirements of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (SFAS 133). That is, for instruments for which there was an inability to achieve hedge accounting and for which we are economically hedged, we have elected the fair value option. Likewise, where we manage an activity on a fair value basis but previously have been unable to achieve fair value accounting, we have utilized the fair value option to align our risk management accounting to our financial reporting.

Fair value hierarchy

Financial instruments recorded in the Group’s Consolidated balance sheets at fair value have been categorized based upon the relative reliability of the fair value measures in accordance with SFAS 157 (the fair value hierarchy).

The levels of the fair value hierarchy are defined as follows in SFAS 157:

– Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access. This level of the fair value hierarchy provides the most reliable evidence of fair value and is used to measure fair value whenever available.

– Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. These inputs include: (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current or price quotations vary substantially either over time or among market makers, or in which little information is publicly available; (c) inputs other than quoted prices that are observable for the asset or liability; or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

– Level 3: Inputs that are unobservable for the asset or liability. These inputs reflect the Group’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available in the circumstances, which include the Group’s own data. The Group’s own data used to develop unobservable inputs is adjusted if information indicates that market participants would use different assumptions.

The Group records net open positions at bid prices if long, or at ask prices if short, unless the Group is a market maker in such positions, in which case mid pricing is utilized. Fair value measurements are not adjusted for transaction costs.

Prior to January 1, 2007, net costs of originating or acquiring mortgage loans held-for-sale were recognized as part of the initial loan-carrying value, with any subsequent change in fair value being recognized as a component of trading revenues. For such loans where the fair value option has been elected, net costs are now recognized on a gross basis as fee income and/or expense.

Quantitative disclosures of fair values

6,047

Fair value of assets and liabilities measured at fair value on a recurring basis
end of 2007	Quoted prices in active markets for identical assets or liabilities (level1)	Significant other observable inputs (level 2)	Significant unobserv- able inputs (level 3)	Impact of netting	1	Total at fair value
Assets (CHF million)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	0	183,719	0	0		183,719
Securities received as collateral	25,488	2,826	0	0		28,314
Trading assets	252,055	567,258	60,134	(346,200)		533,247
Investment securities	14,451	992	10	0	< /font>	15,453
Other investments	565	6,893	17,737	0		25,195
Loans	0	25,409	5,638	0		31,047
Other intangible assets	0	0	179	0		179
Other assets	4,092	37,248	8,080	(94)		49,326
Total assets at fair value	296,651	824,345	91,778	(346,294)		866,480
Liabilities (CHF million)
Due to banks	0	6,041	6	0
Customer deposits	0	6,134	0	0		6,134
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	0	140,424	0	0		140,424
Obligations to return securities received as collateral	25,488	2,826	0	0		28,314
Trading liabilities	111,776	416,688	19,597	(346,252)		201,809
Short-term borrowings	0	7,426	694	0		8,120
Long-term debt	0	80,061	31,232	0		111,293
Other liabilities	0	24,102	173	(42)		24,233
Total liabilities at fair value	137,264	683,702	51,702	(346,294)		526,374
Net assets/liabilities at fair value	159,387	140,643	40,076	0		340,106
end of 9M07
Total assets at fair value	295,882	733,303	82,733	(277,283)		834,635
Total liabilities at fair value	147,145	634,107	52,556	(277,283)		556,525
Net assets/liabilities at fair value	148,737	99,196	30,177	0		278,110
1    Derivative contracts are reported on a gross basis by level. The impact of netting represents an adjustment related to counterparty netting.

Fair value of assets and liabilities measured at fair value on a recurringbasis using significant unobservable inputs (level 3)
2007	Derivatives, net	Private equity investments	Other		Total
Assets (CHF million)
Balance at beginning of period	189	14,953	10,712		25,854
Net realized/unrealized gains/(losses) included in net revenues	7,013	3,610	(4,930)		5,693
Purchases, sales, issuances and settlements	525	(631)	26,851		26,745
Transfers in and/or out of level 3	(1,905)	(195)	16,258		14,158
Balance at end of period	5,822	17,737	48,891		72,450
Liabilities (CHF million)
Balance at beginning of period	0	0	27,939	1	27,939
Net realized/unrealized gains/(losses) included in net revenues	0	0	(1,965)		(1,965)
Purchases, sales, issuances and settlements	0	0	14,788		14,788
Transfers in and/or out of level 3	0	0	(8,388)		(8,388)
Balance at end of period	0	0	32,374	1	3 2,374
Net	5,822	17,737	16,517		40,076
Total realized/unrealized gains/(losses) included in net revenues	7,013	3,610	(2,965)		7,658
1    Includes primarily structured notes.

Gains and losses on assets and liabilities measured at fair value on a recurringbasis using significant unobservable inputs (level 3)
in 2007	Trading revenues	Other revenues	Total revenues
Gains and losses on assets and liabilities (CHF million)
Net realized/unrealized gains/(losses) included in net revenues	2,705	4,953	7,658
Whereof:
Changes in unrealized gains or losses relating    to assets and liabilities still held as of the reporting date	3,553	2,848	6,401

Both observable and unobservable inputs may be used to determine the fair value of positions that have been classified within level 3. As a result, the unrealized gains and losses for assets and liabilities within level 3 presented in the table above may include changes in fair value that were attributable to both observable and unobservable inputs.

We employ various economic hedging techniques in order to manage risks, including risks in level 3 positions. Such techniques may include the purchase or sale of financial instruments that are classified in levels 1 and/or 2. The realized and unrealized gains and losses for assets and liabilities in level 3 presented in the table above do not reflect the related realized or unrealized gains and losses arising on economic hedging instruments classified in levels 1 and/or 2.

Nonrecurring fair value changes

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). As of December 31, 2007, CHF 6.3 billion of loans have been recorded at fair value, of which CHF 5.7 billion and CHF 0.6 billion were classified as level 2 and level 3, respectively.

Qualitative disclosures of valuation techniques

Trading assets and liabilities

Money market instruments

Traded money market instruments include instruments such as bankers’ acceptances, certificates of deposit, commercial papers, book claims, treasury bills and other rights, which are held for trading purposes. Valuations of money market instruments are generally based on observable inputs.

Trading securities

The Group’s trading securities consist of interest-bearing securities and rights and equity securities. Interest-bearing securities and rights include debt securities, residential and commercial mortgage-backed securities and other asset-backed securities and CDOs. Equity securities include common equity shares, convertible bonds and separately managed funds.

For debt securities for which market prices are not available, valuations are based on yields reflecting the perceived risk of the issuer and the maturity of the security, recent disposals in the market or other modeling techniques, which may involve judgment.

Values of residential and commercial mortgage-backed securities and other asset-backed securities are generally available through quoted prices, which are often based on the prices at which similarly structured and collateralized securities trade between dealers and to and from customers. Values of residential and commercial mortgage-backed securities and other asset-backed securities for which there are no significant observable inputs are valued using benchmarks to similar transactions on indices and other valuation models.

Collateralized debt, bond and loan obligations are split into various structured tranches and each tranche is valued based upon its individual rating and the underlying collateral supporting the structure. Valuation models are used to value both cash and synthetic CDOs.

The majority of the Group’s positions in equity securities are traded on public stock exchanges for which quoted prices are readily and regularly available. Fair values of preferred shares are determined by their yield and the subordination relative to the issuer’s other credit obligations. Convertible bonds are generally valued using observable pricing sources. For a small number of convertible bonds, no observable prices are available, and valuation is determined using internal and external models, for which the key inputs include stock price, dividend rates, credit spreads, foreign exchange rates, prepayment rates and equity market volatility.

Derivatives

Positions in derivatives held for trading purposes include both OTC and exchange-traded derivatives. The fair values of exchange-traded derivatives are typically derived from the observable exchange prices and/or observable inputs. The fair values of OTC derivatives are determined on the basis of internally developed proprietary models using various inputs. The inputs include those characteristics of the derivative that have a bearing on the economics of the instrument.

The determination of the fair value of many derivatives involves only a limited degree of subjectivity because the required inputs are observable in the marketplace. Other, more complex derivatives use unobservable inputs. Specific unobservable inputs include long-dated volatility assumptions on OTC option transactions and recovery rate assumptions for credit derivative transactions. Uncertainty of pricing inputs and liquidity are also considered as part of the valuation process.

Other trading assets

Other trading assets primarily include residential mortgage loans that are purchased with an intent to securitize or sell as loans. Valuations for traded residential mortgage loans are determined based on an exit price basis.

Investment securities

Investment securities recorded at fair value include debt and equity securities. These debt and equity securities are quoted in active or inactive markets. These instruments include government and corporate bonds.

Other investments

The Group’s other investments include hybrid instruments, private equity and other alternative capital investments.

Private equity and other long-term investments include direct investments and investments in partnerships that make private equity and related investments in various portfolio companies and funds. Private equity investments and other long-term investments consist of both publicly traded securities and private securities. Publicly traded investments that are restricted or that are not quoted in active markets are valued based upon quotes with appropriate adjustments for liquidity or trading restrictions. Private securities are valued taking into account a number of factors, such as the most recent round of financing involving unrelated new investors, earnings multiple analyses using comparable companies or discounted cash flow analyses.

Internally managed funds include partnerships and related direct investments for which the Group acts as the fund’s advisor and makes investment decisions. Internally managed funds principally invest in private securities and, to a lesser extent, publicly traded securities and fund of funds partnerships. The fair value of investments in internally managed fund of funds partnerships is based on the valuation received from the underlying fund manager and is reviewed by us. The fair value of investments in other internally managed funds is based on the Group’s valuation. Balances for internally managed funds also include amounts relating to the consolidation of private equity funds under EITF 04-5 and FIN 46(R). A substantial portion of the investments held by the private equity funds consolidated primarily under EITF 04-5 and FIN 46(R) is reflected in level 3. Funds managed by third parties include investments in funds managed by an external fund manager. The fair value of these funds is based on the valuation received from the general partner of the fund and is reviewed by us.

Loans

The Group’s loans include consumer, mortgage, corporate and emerging market loans. The fair value of corporate and emerging market loans within the Investment Banking segment is based on quoted prices, where available. Where quoted prices are not available, fair values are calculated using implied credit spreads derived from credit default swaps for the specific borrower. Where credit default swaps for a particular borrower are not available, a matrix of similar entity-implied credit spreads from credit default swaps is constructed to derive an implied credit spread for that particular borrower. Alternatively, fair value is determined utilizing unobservable inputs and a discounted cash flow analysis. Consumer, mortgage and corporate loans within the Private Banking segment are not held at fair value.

Short-term borrowings and long-term debt

The Group’s short-term borrowings and long-term debt include structured notes (hybrid financial instruments that are both bifurcatable and non-bifurcatable) and vanilla debt. The fair value of these debt instruments is based on quoted prices, where available. Where quoted prices are not available, fair values are calculated using yield curves for similar maturities, taking into consideration the impact of the Group’s own credit spread on these instruments.

Other assets and other liabilities

The Group’s other assets and liabilities include mortgage loans held in conjunction with securitization activities and assets and liabilities of VIEs and mortgage securitizations that do not meet the criteria for sale treatment under SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (a replacement of FASB Statement No. 125)” (SFAS 140). The fair value of mortgage loans held in conjunction with securitization activities is determined on a whole-loan basis. Whole-loan valuations are calculated based on the exit price reflecting the current market conditions. The fair value of assets and liabilities of VIEs and mortgage securitizations that do not meet the criteria for sale treatment under SFAS 140 is determined based on the quoted prices for securitized bonds, where available, or on cash flow analyses for securitized bonds, when quoted prices are no t available.

Fair value option

Upon adoption of SFAS 159, the Group elected fair value for certain of its financial statement captions as follows:

Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions

The Group has elected to account for structured resale agreements and most matched book resale agreements held as of January 1, 2007, and those entered into after January 1, 2007, at fair value. These activities are managed on a fair value basis; thus, fair value accounting is deemed more appropriate for reporting purposes. The Group did not elect the fair value option for firm financing resale agreements as these agreements are generally overnight agreements which approximate fair value, but which are not managed on a fair value basis.

Other investments

The Group has elected to account for certain equity method investments held as of January 1, 2007, and certain of those entered into after January 1, 2007, at fair value. These activities are managed on a fair value basis; thus, fair value accounting is deemed more appropriate for reporting purposes. Certain similar instruments, such as those relating to equity method investments in strategic relationships, for example, the Group’s ownership interest in certain clearance organizations, which were eligible for the fair value option, were not elected due to the strategic relationship.

Loans

The Group has elected to account for substantially all Investment Banking commercial loans and loan commitments and certain Investment Banking emerging market loans held as of January 1, 2007, and those entered into after January 1, 2007, at fair value. These activities are managed on a fair value basis; thus, fair value accounting is deemed more appropriate for reporting purposes. Additionally, recognition on a fair value basis eliminates the mismatch that currently exists due to the economic hedging the Group employs to manage these loans. Certain similar loans, such as project finance, lease finance, cash collateralized and some bridge loans, which were eligible for the fair value option, were not elected due to the lack of currently available infrastructure to fair value such loans and/or the inability to economically hedge such loans. Additionally, the Group elected not to account for loans granted by its Private Bank ing segment at fair value, including domestic consumer lending, mortgages, corporate loans, etc., as these loans are not managed on a fair value basis.

Other assets

The Group did not elect the fair value option for loans held-for-sale as of January 1, 2007 as the current carrying values are deemed appropriate. The Group elected the fair value option for new loans entered into subsequent to January 1, 2007 due to the short period over which such loans are held and the intention to sell such loans in the near term. Other assets also include assets of VIEs and mortgage securitizations which do not meet the criteria for sale treatment under SFAS 140. The Group did not elect the fair value option for such assets existing as of January 1, 2007 due to the operational effort to change accounting for existing items reflected in the Group’s Consolidated financial statements. The fair value option was elected for these types of transactions entered into after January 1, 2007.

Due to banks

The Group elected the fair value option for certain time deposits associated with its emerging markets activities entered into after January 1, 2007.

Customer deposits

The Group’s customer deposits include fund-linked deposits. The Group elected the fair value option for these fund-linked deposits as of January 1, 2007 and those entered into after January 1, 2007. Fund-linked products are managed on a fair value basis; thus, fair value accounting is deemed more appropriate for reporting purposes.

Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions

The Group has elected to account for structured repurchase agreements and most matched book repurchase agreements held as of January 1, 2007, and those entered into after January 1, 2007, at fair value. These activities are managed on a fair value basis; thus, fair value accounting is deemed more appropriate for reporting purposes. The Group did not elect the fair value option for firm financing repurchase agreements as these agreements are generally overnight agreements which approximate fair value, but which are not managed on a fair value basis.

Short-term borrowings

The Group’s short-term borrowings include hybrid debt instruments with embedded derivative features. Some of these embedded derivative features create bifurcatable debt instruments. The Group elected the fair value option for some of these instruments as of January 1, 2006 in accordance with the provisions of SFAS 155. New bifurcatable debt instruments which were entered into in 2006 are carried at fair value, in accordance with SFAS 155. Some hybrid debt instruments do not result in bifurcatable debt instruments. The adoption of SFAS 159 permits the Group to elect fair value accounting for non-bifurcatable hybrid debt instruments. With the exception of certain bifurcatable hybrid debt instruments which the Group did not elect to account for at fair value upon the adoption of SFAS 155, the Group has elected to account for all hybrid debt instruments held as of January 1, 2007, and hybrid debt instruments originated a fter January 1, 2007, at fair value. These activities are managed on a fair value basis; thus, fair value accounting is deemed appropriate for reporting purposes. There are two main populations of similar instruments for which fair value accounting was not elected. The first relates to the lending business transacted by the Group’s Private Banking segment, which includes structured deposits and similar investment products. These are managed on a bifurcated or accrual basis; thus, fair value accounting is not considered appropriate. The second is where the instruments were or will be maturing in the near term and their fair value will be realized at that time.

Long-term debt

The Group’s long-term debt includes hybrid debt instruments with embedded derivative features as described above in “Short-term borrowings.” The Group’s long-term debt also includes debt issuances managed by its central Treasury department that do not contain derivative features (vanilla debt). The Group actively manages the interest rate risk on these instruments with derivatives; in particular, fixed-rate debt is hedged with receive-fixed, pay-floating interest rate swaps. The Group has availed itself of the simplification objective of the fair value option to elect fair value for this fixed-rate debt and will no longer be required to maintain hedging documentation to achieve a similar financial reporting outcome.

Other liabilities

Other liabilities include liabilities of VIEs and mortgage securitizations which do not meet the criteria for sale treatment under SFAS 140. The Group did not elect the fair value option for such liabilities existing as of January 1, 2007 due to the operational effort to change accounting for existing items reflected in the Group’s Consolidated financial statements. The Group did elect the fair value option for these types of transactions entered into after January 1, 2007.

Cumulative effect adjustment to opening retained earnings due to adoption of fair value option
as of January 1, 2007	Carrying value prior to adoption	Net gains/ (losses)	Fair value after adoption
Balance sheet items (CHF million)
Other investments	34	1	35
Loans	13,694	78	13,772
Other assets	1,313	2	1,315
Due to banks and customer deposits	(229)	(21)	(250)
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions, net	(43,102)	(5)	(43,107)
Short-term borrowings	(2,543)	1	(2,542)
Long-term debt	(52,691)	(1,168)	(53,859)
Other liabilities	(211)	(286)	(497)
Pre-tax cumulative effect of adoption of the fair value option		(1,398)
Deferred taxes		395
Cumulative effect of adoption of the fair value option (charge to retained earnings)		(1,003)

Gains and losses on financial instruments
in 2007	Net gains/(losses)
Financial instruments (CHF million)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	19,466	1
Trading loans	117	1
of which related to credit risk	(113)
Other investments	44	2
Loans	1,345	1
of which related to credit risk	(408)
Other assets	955	1
of which related to credit risk	(1,264)
Due to banks and customer deposits	(258)	1
of which related to credit risk	5
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	(21,151)	1
Short-term borrowings	0	1
Long-term debt	(5,688)	2
of which related to credit risk	1,204
Other liabilities	(1,402)	2
of which related to credit risk	(1,402)
1    Primarily recognized in net interest income.      2    Primarily recognized in trading revenues and/or other revenues.

Interest income and expense are calculated based on contractual rates specified in the transactions. Interest income and expense are recorded in the Consolidated statements of income depending on the nature of the instrument and related market convention. When interest is included as a component of the change in the instrument’s fair value, interest is included in trading revenues. Otherwise, it is included in interest and dividend income or interest expense. Dividend income is recognized separately from trading revenues.

The impacts of credit risk on debt securities held as assets presented in the table above have been calculated as the component of the total change in fair value excluding the impact of changes in base or risk-free interest rates. The impacts of changes in own credit risk on liabilities presented in the table above have been calculated as the difference between the fair values of those instruments as of the reporting date and the theoretical fair values of those instruments calculated by using the yield curve prevailing at the end of the reporting period, adjusted up or down for changes in our own credit spreads from the transition date to the reporting date.

Difference between the aggregate fair value and the aggregate unpaid principal balances of loans and financial instruments
end of 2007	Aggregate fair value	Aggregate unpaid principal	Difference
Loans (CHF million)  1
Non-accrual loans	232	459	(227)
Financial instruments (CHF million)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	183,720	183,303	417
Loans	31,046	31,517	(471)
Other assets	33,936	35,420	(1,484)
Due to banks and customer deposits	(5,902)	(5,895)	(7)
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	(140,424)	(140,436)	12
Short-term borrowings	(8,120)	(8,409)	289
Long-term debt	(111,293)	(111,595)	302
Other liabilities	(3,648)	(3,646)	(2)
1    There were no non-performing loans 90 days or more past due which were carried at fair value.

Note 22 Subsidiary guarantee information

On March 26, 2007, the Group and the Bank issued full, unconditional and several guarantees of Credit Suisse (USA), Inc.’s outstanding US Securities and Exchange Commission-registered debt securities. In accordance with the guarantees, if Credit Suisse (USA), Inc. fails to make any timely payment under the agreements governing such debt securities, the holders of the debt securities may demand payment from either the Group or the Bank, without first proceeding against Credit Suisse (USA), Inc. The guarantee from the Group is subordinated to senior liabilities. Credit Suisse (USA), Inc. is an indirect, wholly owned subsidiary of the Group.

Condensed consolidating statements of income
in 4Q07	Credit Suisse (USA), Inc.	Other Credit Suisse subsidiaries	1	Credit Suisse (the Bank)	Credit Suisse Group parent company	Other Credit Suisse Group subsidiaries	1	Credit Suisse Group
Condensed consolidating statements of income (CHF million)
Interest and dividend income	6,784	8,199		14,983	109	129		15,221
Interest expense	(6,193)	(6,833)		(13,026)	(123)	84		(13,065)
Net interest income	591	1,366		1,957	(14)	213		2,156
Commissions and fees	1,218	3,311		4,529	5	345		4,879
Trading revenues	(1,309)	1,642		333	0	124		457
Other revenues	1,804	198		2,002	1,344	(1,425)		1,921
Net revenues	2,304	6,517		8,821	1,335	(743)		9,413
Provision for credit losses	(1)	196		195	< b>0	8		203
Compensation and benefits	988	2,426		3,414	(57)	111		3,468
General and administrative expenses	354	1,546		1,900	61	61		2,022
Commission expenses	108	530		638	0	56		694
Total other operating expenses	462	2,076		2,538	61	117		2,716
Total operating expenses	1,450	4,502		5,952	4	228		6,184
Income from continuing operations before taxes, minority interests and extraordinary items	855	1,819		2,674	1,331	(979)		3,026
Income tax expense	(377)	361		(16)	2	(1)		(15)
Minority interests	1,667	291		1,958	0	(246)		1,712
Income from continuing operations before extraordinary items	(435)	1,167		732	1,329	(732)		1,329
Net income	(435)	1,167		732	1,329	(732)		1,329
in 4Q06
Condensed consolidating statements of income (CHF million)
Interest and dividend income	5,922	6,885		12,807	99	111		13,017
Interest expense	(5,754)	(5,768)		(11,522)	(148)	80		(11,590)
Net interest income	168	1,117		1,285	(49)	191		1,427
Commissions and fees	1,652	3,105		4,757	6	306		5,069
Trading revenues	901	1,960		2,861	2	93		2,956
Other revenues	946	449		1,395	4,588	(4,621)		1,362
Net revenues	3,667	6,631		10,298	4,547< /b>	(4,031)		10,814
Provision for credit losses	0	(23)		(23)	< b>0	3		(20)
Compensation and benefits	1,413	2,555		3,968	10	122		4,100
General and administrative expenses	243	1,670		1,913	(139)	41		1,815
Commission expenses	125	440		565	3	37		605
Total other operating expenses	368	2,110		2,478	(136)	78		2,420
Total operating expenses	1,781	4,665		6,446	(126)	200		6,520
Income from continuing operations before taxes, minority interests and extraordinary items	1,886	1,989		3,875	4,673	(4,234)		4,314
Income tax expense	338	516		854	0	(49)		805
Minority interests	774	154		928	0	(18)		910
Income from continuing operations before extraordinary items	774	1,319		2,093	4,673	(4,167)		2,599
Income from discontinued operations, net of tax	0	0		0	0	2,074		2,074
Net income	774	1,319		2,093	4,673	(2,093)		4,673
1    Includes eliminations and consolidation adjustments.

Condensed consolidating statements of income
in 2007	Credit Suisse (USA), Inc.	Other Credit Suisse subsidiaries	1	Credit Suisse (the Bank)	Credit Suisse Group parent company		Other Credit Suisse Group subsidiaries	1	Credit Suisse Group
Condensed consolidating statements of income (CHF million)
Interest and dividend income	28,031	33,573		61,604	463		495		62,562
Interest expense	(26,612)	(27,383)		(53,995)	(520)		406		(54,109)
Net interest income	1,419	6,190		7,609	(57)		901		8,453
Commissions and fees	5,108	12,814		17,922	22	< /sup>	1,385		19,329
Trading revenues	516	6,467		6,983	1		341		7,325
Other revenues	5,097	869		5,966	8,568		(8,729)		5,805
Net revenues	12,140	26,340		38,480	8,53 4		(6,102)		40,912
Provision for credit losses	(1)	228		227	< b>0		13		240
Compensation and benefits	5,158	10,490		15,648	99	< sup>	472		16,219
General and administrative expenses	1,403	5,461		6,864	(126)		178		6,916
Commission expenses	443	1,948		2,391	8	< /font>	213		2,612
Total other operating expenses	1,846	7,409		9,255	(118)		391		9,528
Total operating expenses	7,004	17,899		24,903	(19)		863		25,747
Income from continuing operations before taxes, minority interests and extraordinary items	5,137	8,213		13,350	8,553		(6,978)		14,925
Income tax expense	(70)	1,304		1,234	4	< /font>	400		1,638
Minority interests	4,405	714		5,119	0		(381)		4,738
Income from continuing operations before extraordinary items	802	6,195		6,997	8,549		(6,997)		8,549
Net income	802	6,195		6,997	8,549		(6,997)		8,549
in 2006
Condensed consolidating statements of income (CHF million)
Interest and dividend income	22,724	26,668		49,392	342		535		50,269
Interest expense	(21,594)	(21,829)		(43,423)	(541)		261		(43,703)
Net interest income	1,130	4,839		5,969	(199)	< /sup>	796		6,566
Commissions and fees	5,435	10,944		16,379	17	< /sup>	1,251		17,647
Trading revenues	2,773	6,389		9,162	(29)		295		9,428
Other revenues	3,763	1,339		5,102	11,319		(11,459)		4,962
Net revenues	13,101	23,511		36,612	11,1 08		(9,117)		38,603
Provision for credit losses	0	(97)		(97)	< b>0		(14)		(111)
Compensation and benefits	5,456	9,676		15,132	87		478		15,697
General and administrative expenses	925	5,729		6,654	(314)		105		6,445
Commission expenses	469	1,653		2,122	5	< /font>	145		2,272
Total other operating expenses	1,394	7,382		8,776	(309)		250		8,717
Total operating expenses	6,850	17,058		23,908	(222)		728		24,414
Income from continuing operations before taxes, minority interests and extraordinary items	6,251	6,550		12,801	11,330		(9,831)		14,300
Income tax expense	964	1,173		2,137	3		249		2,389
Minority interests	3,299	321		3,620	0		10		3,630
Income from continuing operations before extraordinary items	1,988	5,056		7,044	11,327		(10,090)		8,281
Income from discontinued operations, net of tax	0	0		0	0		3,070		3,070
Extraordinary items, net of tax	0	(24)		(24)	0		0		(24)
Net income	1,988	5,032		7,020	11,327		(7,020)		11,327
1    Includes eliminations and consolidation adjustments.

< td width="3" height="16">

Condensed consolidating balance sheets
end of 4Q07	Credit Suisse (USA), Inc.	Other Credit Suisse subsidiaries	1	Credit Suisse (the Bank)	Credit Suisse Group parent company		Other Credit Suisse Group subsidiaries	1	Credit Suisse Group
Assets (CHF million)
Cash and due from banks	3,118	33,186		36,304	7		2,148		38,459
Interest-bearing deposits with banks	49,060	(44,534)		4,526	0		(767)		3,759
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	182,625	113,716		296,341	0	368		296,709
Securities received as collateral	29,194	(466)		28,728	0		(414)		28,314
Trading assets	161,824	369,466		531,290	0		1,957		533,247
Investment securities	0	14,515		14,515	29		1,187		15,731
Other investments	18,312	9,595		27,907	45,969		(45,756)		28,120
Net loans	909	220,661		221,570	9,440		9,524		240,534
Premises and equipment	839	4,751		5,590	0		559		6,149
Goodwill	806	8,940		9,746	0		1,136		10,882
Other intangible assets	224	197		421	0	< /font>	23		444
Other assets	33,416	124,426		157,842	203		1,325		159,370
Total assets	480,327	854,453		1,334,780	55,648		(28,710)		1,361,718
Liabilities and shareholders' equity (CHF million)
Due to banks	62	106,917		106,979	5,978	< /font>	(22,093)		90,864
Customer deposits	2	307,596		307,598	0	< /font>	27,907		335,505
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	214,479	85,997		300,476	0	(95)		300,381
Obligation to return securities received as collateral	29,194	(466)		28,728	0		(414)		28,314
Trading liabilities	59,204	141,371		200,575	0		1,234		201,809
Short-term borrowings	49,915	(35,517)		14,398	0		4,992		19,390
Long-term debt	47,353	109,929		157,282	5,421	< /sup>	(2,546)		160,157
Other liabilities	46,316	116,293		162,609	269		1,800		164,678
Minority interests	15,267	8,858		24,125	0		(7,485)		16,640
Total liabilities	461,792	840,978		1,302,770	11,668		3,300		1,317,738
Total shareholders' equity	18,535	13,475		32,010	43,980		(32,010)		43,980
Total liabilities and shareholders' equity	480,327	854,453		1,334,780	55,648		(28,710)		1,361,718
1    Includes eliminations and consolidation adjustments.

< td width="3" height="16">

Condensed consolidating balance sheets
end of 4Q06	Credit Suisse (USA), Inc.	Other Credit Suisse subsidiaries	1	Credit Suisse (the Bank)	Credit Suisse Group parent company		Other Credit Suisse Group subsidiaries	1	Credit Suisse Group
Assets (CHF million)
Cash and due from banks	2,323	25,542		27,865	9,150		(7,975)		29,040
Interest-bearing deposits with banks	34,059	(30,149)		3,910	1,047		3,171		8,128
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	173,505	145,067		318,572	0	476		319,048
Securities received as collateral	13,489	18,821		32,310	0		75		32,385
Trading assets	150,742	298,680		449,422	0		1,358		450,780
Investment securities	0	20,304		20,304	29		1,061		21,394
Other investments	15,107	5,081		20,188	35,041		(34,751)		20,478
Net loans	780	190,103		190,883	9,860		7,384		208,127
Premises and equipment	820	4,623		5,443	0		547		5,990
Goodwill	752	9,137		9,889	0		1,134		11,023
Other intangible assets	240	235		475	0	< /font>	1		476
Other assets	47,031	100,472		147,503	497		1,087		149,087
Total assets	438,848	787,916		1,226,764	55,624		(26,432)		1,255,956
Liabilities and shareholders' equity (CHF million)
Due to banks	159	104,565		104,724	5,870		(13,080)		97,514
Customer deposits	57	280,143		280,200	0		10,664		290,864
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	231,212	57,230		288,442	0	2		288,444
Obligation to return securities received as collateral	13,489	18,821		32,310	0		75		32,385
Trading liabilities	48,103	149,833		197,936	0		486		198,422
Short-term borrowings	24,539	(8,252)		16,287	0		5,269		21,556
Long-term debt	53,127	90,894		144,021	5,738		(1,927)		147,832
Other liabilities	37,887	79,949		117,836	430	< /sup>	1,769		120,035
Minority interests	12,715	6,248		18,963	0		(3,645)		15,318
Total liabilities	421,288	779,431		1,200,719	12,038		(387)		1,212,370
Total shareholders' equity	17,560	8,485		26,045	43,586		(26,045)		43,586
Total liabilities and shareholders' equity	438,848	787,916		1,226,764	55,624		(26,432)		1,255,956
1    Includes eliminations and consolidation adjustments.

< td align="right">83

Condensed consolidating statements of cash flows
in 2007	Credit Suisse (USA), Inc.	Other Credit Suisse subsidiaries	1	Credit Suisse (the Bank)	Credit Suisse Group parent company		Other Credit Suisse Group subsidiaries	1	Credit Suisse Group
Operating activities of continuing operations (CHF million)
Net cash provided by/(used in) operating activities of continuing operations	20,718	(74,669)		(53,951)	7,257		(11,197)		(57,891)
Investing activities of continuing operations (CHF million)
(Increase)/decrease in interest-bearing deposits with banks	(18,798)	18,343		(455)	1,046		3,468		4,059
(Increase)/decrease in central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	(24,049)	27,376		3,327	0		109		3,436
Purchase of investment securities	0	(445)		(445)	0		(483)		(928)
Proceeds from sale of investment securities	0	2,884		2,884	0		21		2,905
Maturities of investment securities	0	3,451		3,451	0		318		3,769
Investments in subsidiaries and other investments	(2,680)	(5,715)		(8,395)	(10,311)		11,080		(7,626)
Proceeds from sale of other investments	1,447	741		2,188	1,234		(1,134)		2,288
(Increase)/decrease in loans	(166)	(35,971)		(36,137)	2,489		(1,824)		(35,472)
Proceeds from sales of loans	0	339		339	0		0		339
Capital expenditures for premises and equipment and other intangible assets	(422)	(874)		(1,296)	0		(254)		(1,550)
Proceeds from sale of premises and equipment and other intangible assets	78	12		90	0		160		250
Other, net	(78)	35		(43)	6			46
Net cash provided by/(used in) investing activities of continuing operations	(44,668)	10,176		(34,492)	(5,536)		11,544		(28,484)
Financing activities of continuing operations (CHF million)
Increase/(decrease) in due to banks and customer deposits	(146)	46,436		46,290	147		6,073		52,510
Increase/(decrease) in short-term borrowings	28,774	(28,823)		(49)	0		(468)		(517)
Increase/(decrease) in central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	1,262	29,328		30,590	0		(97)		30,493
Issuances of long-term debt	106	77,680		77,786	0		3,365		81,151
Repayments of long-term debt	(4,158)	(58,480)		(62,638)	(2,268)		(400)		(65,306)
Issuance of trust preferred securities	0	22		22	0	< sup>	(22)		0
Issuances of common shares	0	0		0	60		0		60
Issuances of treasury shares	0	0		0	1		36,277		36,278
Repurchase of treasury shares	0	(287)		(287)	(5,335)		(36,257)		(41,879)
Dividends paid/capital repayments	(1,302)	196		(1,106)	(2,587)		1,181		(2,512)
Other, net	389	7,132		7,521	(878)		214		6,857
Net cash provided by/(used in) financing activities of continuing operations	24,925	73,204		98,129	(10,860)		9,866		97,135
Effect of exchange rate changes on cash and due from banks (CHF million)
Effect of exchange rate changes on cash and due from banks	(180)	(1,067)		(1,247)	(4)		(90)		(1,341)
Net increase/(decrease) in cash and due from banks (CHF million)
Net increase/(decrease) in cash and due from banks	795	7,644		8,439	(9,143)		10,123		9,419
Cash and due from banks at beginning of period	2,323	25,542		27,865	9,150		(7,975)		29,040
Cash and due from banks at end of period	3,118	33,186		36,304	7		2,148		38,459
1    Includes eliminations and consolidation adjustments.

< td align="right">(237)

Condensed consolidating statements of cash flows
in 2006	Credit Suisse (USA), Inc.	Other Credit Suisse subsidiaries	1	Credit Suisse (the Bank)	Credit Suisse Group parent company		Other Credit Suisse Group subsidiaries	1	Credit Suisse Group
Operating activities of continuing operations (CHF million)
Net cash provided by/(used in) operating activities of continuing operations	(22,138)	(25,454)		(47,592)	2,780		(3,733)		(48,545)
Investing activities of continuing operations (CHF million)
(Increase)/decrease in interest-bearing deposits with banks	(6,514)	6,844		330	(1,038)		(1,872)		(2,580)
(Increase)/decrease in central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	(6,084)	15,925		9,841	0		(910)		8,931
Purchase of investment securities	0	(1,641)		(1,641)	0		(1,339)		(2,980)
Proceeds from sale of investment securities	0	1,234		1,234	0		22		1,256
Maturities of investment securities	0	3,533		3,533	0		1,502		5,035
Investments in subsidiaries and other investments	(5,945)	(596)		(6,541)	(939)		1,271		(6,209)
Proceeds from sale of other investments	1,020	685		1,705	12,255		(11,860)		2,100
(Increase)/decrease in loans	227	(26,704)		(26,477)	(4,054)		7,372		(23,159)
Proceeds from sales of loans	0	3,142		3,142	0		0		3,142
Capital expenditures for premises and equipment and other intangible assets	(609)	(879)		(1,488)	0		(42)		(1,530)
Proceeds from sale of premises and equipment and other intangible assets	25	9		34	0		0		34
Other, net	(11)	106		95	56			(86)
Net cash provided by/(used in) investing activities of continuing operations	(17,891)	1,658		(16,233)	6,280		(6,093)		(16,046)
Financing activities of continuing operations (CHF million)
Increase/(decrease) in due to banks and customer deposits	4	51,150		51,154	3,699		(16,320)		38,533
Increase/(decrease) in short-term borrowings	7,381	(6,898)		483	0		2,608		3,091
Increase/(decrease) in central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	21,392	(22,784)		(1,392)	0		(24)		(1,416)
Issuances of long-term debt	16,899	59,697		76,596	0		(675)		75,921
Repayments of long-term debt	(4,976)	(44,426)		(49,402)	(800)		(1,093)		(51,295)
Issuances of common shares	0	0		0	48		0		48
Issuances of treasury shares	0	(4)		(4)	4,336		12,953		17,285
Repurchase of treasury shares	0	(4,664)		(4,664)	(5,428)		(13,369)		(23,461)
Dividends paid/capital repayments	(78)	(2,450)		(2,528)	(2,290)		2,472		(2,346)
Other, net	651	1,319		1,970	362	< /td>	371		2,703
Net cash provided by/(used in) financing activities of continuing operations	41,273	30,940		72,213	(73)		(13,077)		59,063
Effect of exchange rate changes on cash and due from banks (CHF million)
Effect of exchange rate changes on cash and due from banks	(82)	(386)		(468)	13		(60)		(515)
Net cash provided by/(used in) discontinued operations (CHF million)
Net cash provided by/(used in) discontinued operations	0	0		0	0		(4,794)		(4,794)
Proceeds from sale of stock by subsidiaries (CHF million)
Proceeds from sale of stock by subsidiaries	0	0		0	0		12,300		12,300
Net increase/(decrease) in cash and due from banks (CHF million)
Net increase/(decrease) in cash and due from banks	1,162	6,758		7,920	9,000		(15,457)		1,463
Cash and due from banks at beginning of period	1,161	18,784		19,945	150		7,482		27,577
Cash and due from banks at end of period	2,323	25,542		27,865	9,150		(7,975)		29,040
1    Includes eliminations and consolidation adjustments.

Note 23 Litigation

In accordance with SFAS No. 5, “Accounting for Contingencies”, the Group has litigation reserves for private litigation involving Enron, certain initial public offering (IPO) allocation practices, research analyst independence and other related litigation of CHF 1.0 billion (USD 0.9 billion) as of December 31, 2007, after deductions for settlements.

The Group is involved in a number of other judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of its businesses. Some of these actions have been brought on behalf of various classes of claimants and seek damages of material and/or indeterminate amounts. The Group believes, based on currently available information and advice of counsel, that the results of such proceedings, in the aggregate, will not have a material adverse effect on its financial condition but might be material to operating results for any particular period, depending, in part, upon the operating results for such period. In respect of each of the matters described above, each of which consists of a number of claims, it is the Group’s belief that the reasonably possible losses relating to such claims in excess of its provisions are either not material or not estimable.

It is inherently difficult to predict the outcome of many of these matters. In presenting the Consolidated financial statements, management makes estimates regarding the outcome of these matters, records a reserve and takes a charge to income when losses with respect to such matters are probable and can be reasonably estimated. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including, but not limited to, the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, the Group’s defenses and its experience in similar cases or proceedings, as well as its assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings.

Further charges or releases of litigation reserves may be necessary in the future as developments in such litigation, claims or proceedings warrant.

Cautionary statement regarding forward-looking information

This report contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:

– our plans, objectives or goals;

– our future economic performance or prospects;

– the potential effect on our future performance of certain contingencies; and

– assumptions underlying any such statements.

Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable securities laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include:

– the ability to maintain sufficient liquidity and access capital markets;

– market and interest rate fluctuations;

– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular;

– the ability of counterparties to meet their obligations to us;

– the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations;

– political and social developments, including war, civil unrest or terrorist activity;

– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;

– operational factors such as systems failure, human error, or the failure to implement procedures properly;

– actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations;

– the effects of changes in laws, regulations or accounting policies or practices;

– competition in geographic and business areas in which we conduct our operations;

– the ability to retain and recruit qualified personnel;

– the ability to maintain our reputation and promote our brand;

– the ability to increase market share and control expenses;

– technological changes;

– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;

– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets;

– the adverse resolution of litigation and other contingencies; and

– our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the information set forth in our Form 20-F Item 3 – Key Information – Risk Factors.